The Financial Reporting Council (FRC) released a correspondence on the rotation of audit firms. As per section 41A (1) of Financial Reporting Act (FRA), an audit firm cannot undertake the statutory audit of the same listed entity continuously for more than seven years (the seven-year duration).

The FRC hereby informs listed entities that after the expiry of the seven-year duration, an audit firm will be prevented from undertaking the statutory audit of the same listed entity before a cooling off period of at least three years.