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Bryan Shaw, a jeweller who took tips from his auditor friend Scott London, pleaded guilty on Monday to securities fraud. London’s 29-year career at KPMG ended in his firing and arrest last month.
Bryan Shaw, a jeweller who took tips from his auditor friend Scott London, pleaded guilty on Monday to securities fraud. London’s 29-year career at KPMG ended in his firing and arrest last month.
(SAM MIRCOVICH/REUTERS)

Auditors reject mandatory rotation schedule

A new report on Canada’s audit standards has come out against mandatory rules that would require companies to regularly replace their auditors.

A steering group that has spent the past 18 months reviewing ways to enhance audit quality in Canada has issued its conclusions about recommended reforms, and has rejected the idea of requiring firms to rotate their auditors. The proposal, which is under review around the world, is intended to ensure auditors remain independent from the firms they are scrutinizing by not staying for too long on an auditing assignment.