Making it mandatory for audit firms to rotate is one of the measures regulators around the world are looking with the intention of improving the independence, objectivity and professional scepticism of auditors.While we agree these attributes are at the heart of the audit profession, we (along with many other players and observers) believe that mandatory audit firm rotation is likely to reduce – not improve – the quality of audits and the reliability of financial reporting. Not only would such measures add cost and complexity to audits, we believe they would actually undermine some of the recent reforms — such as enhanced audit committee oversight over the relationship between company and auditor — that have improved audit quality.
See full Summary: http://www.pwc.com/gx/en/audit-services/publications/regulatory-debate/mandatory-firm-rotation.jhtml
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