Rotation resets audit firm order

The churn raises concerns on fee undercutting and its impact on quality of inspection

Rotation of audit firms mandated by the company law that took effect three years earlier has played out in full force this financial year — around 980 listed companies have changed their incumbents in favour of a new auditor.

The massive churn has snapped some decades-old ties, particularly hitting small firms which are dependent on a handful of clients. It has had a mixed effect on mid-size audit entities, depending on factors such as location and type of clientele. The process has also made the ‘Big Four’ audit networks — Deloitte, EY, KPMG and PwC — more aggressive, reflected in a