MSWG Weekly Newsletter 08 March 2024 (English)
Appointment and resignation of auditors are routine for businesses. While familiarity fosters efficiency, it also breeds complacency. Therefore, companies are encouraged to periodically rotate their audit firms as part of sound corporate governance practice.
However, seeing external auditors resign before their term ends without prior indication is probably a telltale sign that things are not right.
There have been numerous expressions of frustration among external auditors over the years that led to their sudden resignation but the reasons behind such action were obscured by the generic justifications, claiming auditors left voluntarily.