Management Practice Insights


Management Practice Insights

Year: 2023, Volume: 1, Issue: 1, Pages: 12-15

Original Article

Don't Wait for a Crisis: Rotate Your Auditors

Received Date:04 February 2022, Accepted Date:07 March 2023, Published Date:09 May 2023


Problem of Practice: Have you ever wondered what skeletons are hiding in your organization's closet? Is there a flaw in your incentive structure that encourages employees to hide risks instead of raising them? Have you been with the same auditor, or simply swapping two auditors with similar approaches, for many years now? If your answer is 'yes' to any of these questions, perhaps you should consider opting for a new auditor. Recent research by de Ricquebourg and Maroun suggests that rotating your auditor might bring in some surprises but you will avoid any scandals.


1 Alan Duboisée de Ricquebourg and Warren Maroun, “How Do Auditor Rotations Affect Key Audit Matters? Archival Evidence from South African Audits,” The British Accounting Review 55, no. 2 (March 1, 2023): 101099,

2 IAASB, “International Standard on Auditing (ISA) 701 (NEW), Communicating Key Audit Matters in the Independent Auditors Report” (The International Federation of Accountants, January 14, 2015),

3 ACCA, “Key Audit Matters: Unlocking the Secrets of the Audit,” Professional Insights (London, UK: The Association of Chartered Certified Accountants, March 2018),

4 Duboisée de Ricquebourg and Maroun, “How Do Auditor Rotations Affect Key Audit Matters?”

5 Meryl Sebastian, “Adani: How the Billionaires Empire Lost $100bn in Days - BBC News,” BBC News, February 2, 2023, sec. World - India,

6 Nate Anderson, “About Us,” Hindenburg Research, October 19, 2018,

7 Hindenburg Research, “Adani Group: How The Worlds 3rd Richest Man Is Pulling The Largest Con In Corporate History” (USA: Hindenburg Research, January 24, 2023),

8 Ryan Hogg, “Adani Had a Handful of Auditors as Young as 23 Years Old Signing off on Companies Worth $100 Billion, Hindenburg Says,” Markets Insider, Ryan Hogg,

9 IAASB, “International Standard on Auditing (ISA) 701 (NEW), Communicating Key Audit Matters in the Independent Auditors Report.”

10 Microsoft, “2019_Annual_Report.Doc,” Annual Report (Redmond: Microsoft, Inc., October 16, 2019),

11 Jukka Karinen, “Auditor Report 2020 - Ferratum Group,” Auditor Report (Helsinki, Finland: PriceWaterhouseCoopers Oy, March 24, 2021),

12 Ferratum Oyj, “Ferratum,” June 7, 2021,

13 Antti Rautiainen, Jani Saastamoinen, and Kati Pajunen, “Do Key Audit Matters (KAMs) Matter? Auditors Perceptions of KAMs and Audit Quality in Finland,” Managerial Auditing Journal 36, no. 3 (June 18, 2021): 386404,


© 2023 Published by SPJIMR. This is an open-access article under the CC BY license (


Subscribe now for latest articles and news.