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Rotation resets audit firm order

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

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Last Updated : Dec 10 2017 | 11:48 PM IST

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

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