Covid-19: FTSE audit tenders face delays, partner engagements extended

The length of time an audit partner can remain in position without rotating off the client company can be extended on a temporary basis due to the ongoing covid-19 crisis, the Financial Reporting Council (FRC) has confirmed, while it is calling for a halt on company audit tender processes, reports Philip Smith

With a number of companies approaching the 20-year mandatory audit firm rotation limit, the financial regulator is saying that auditors and their client firms can be pragmatic in their approach to tendering and rotation.

An FRC spokesperson told Accountancy Daily: ‘The FRC is considering a number of measures including reminding audit firms that current rules allow extensions on auditor rotation and partner rotation by up to two years. The FRC will be open to such requests.’

‘We recommend that companies do not try to run audit tenders in the present circumstances.’

The spokesperson added that it was important at this time that the FRC and other regulators showed leadership and provided pragmatic guidance and solutions ‘to ensure as far as possible that markets operate effectively’.

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