New rules to restrict appointment of Audit firms for not more than 7 years

Mauritius will soon promulgate the Financial Reporting Council (Rotation of Audit Firm Exemption) Regulations 2022 to restrict the appointment of Audit firms by listed companies.

Section 41 of the Financial Reporting Act provides for the rotation of auditors of a listed company.

According to the new rules, “no audit firm shall, within a period of 10 years from its appointment as an auditor of a listed company, audit the accounts of that company for an aggregate period of more than 7 years”.

This provision is applicable to all companies listed on the local stock market even though the primary listing of the company is not in Mauritius.

According to latest Cabinet papers, companies listed on the SEM but having their primary listing outside Mauritius will be exempted from the regulation.