What Is an Audit Network? What Are the Consequences of Belonging to the Same Network for Rotation Periods?

Under Article 4/1-(e) of the Independent Audit Regulation, an audit network is a cooperative structure of independent audit firms or of independent auditors undertaking audits, regardless of whether there is a legal link between them, that is aimed at sharing profits or costs, or at common ownership, control or management, common quality control policies and procedures, a common business strategy, the use of a common brand or name, or the joint use of a significant part of professional resources.

Article 26/2 of the Independent Audit Regulation states that, in calculating rotation periods, the periods spent on audits carried out by firms within the same audit network are to be taken into account together. Accordingly, if a company's audits are carried out by firms within the same audit network, the rotation period must be assessed collectively rather than separately for each firm.