Rotation rules apply mainly to public interest entities and set time limits at both engagement partner and audit firm level. The periods and cooling-off periods are set by the relevant regulations.
Rotation aims to reduce the familiarity threat created by long-standing relationships.
Related terms
Auditor independenceThe auditor being free of relationships and interests that could affect their objectivity, and being perceived as such by third parties.Engagement partnerThe auditor who conducts the audit on behalf of the audit firm, is responsible for its results and signs the auditor's report.Public interest entityEntities considered to be of public interest because of their business, size or number of stakeholders, and subject to stricter audit rules.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.
Last updated: October 22, 2026 · This definition is for general information only.