The world of auditing is changing, and technology is leading the way. If your current audit feels stuck in the past, a transition might be the perfect opportunity for an upgrade. Switching firms is no longer just about getting a new team; it’s about partnering with a firm that leverages data analytics, AI, and cloud computing to deliver a smarter, more efficient audit. While some companies debate whether to change audit firm every 5 years, the real question is whether your current partner is keeping pace with innovation. A new firm can introduce next-generation tools that provide deeper insights into your operations, improve accuracy, and strengthen your financial oversight for the future.
Key Takeaways
- Treat Audit Rotation as a Strategic Move: Changing your audit firm is more than a compliance task—it’s a powerful risk management strategy that introduces fresh perspectives, strengthens objectivity, and can uncover valuable insights into your financial processes.
- Plan the Transition Meticulously: A smooth handover requires a clear roadmap. Develop a realistic timeline, define specific roles for your board and management teams, and establish a secure protocol for knowledge transfer to prevent disruption and set your new partnership up for success.
- Choose a Partner Who Embraces Technology: The future of auditing is tech-driven. Prioritize a firm that uses modern tools like AI and data analytics to deliver a more efficient, insightful, and high-quality audit that keeps you ahead of evolving industry standards.
What Is Audit Firm Rotation?
Thinking about changing your audit firm can feel like a major undertaking, but it’s a strategic move many businesses consider to maintain financial integrity. Audit firm rotation is the practice of switching your external auditor after a set number of years. The idea is to bring a fresh perspective to your financial statements and internal controls, ensuring objectivity and independence. This isn’t just about checking a compliance box; it’s about strengthening governance and building trust with your stakeholders, from investors to lenders.
In the United States, the conversation often centers on rotating the lead audit partner rather than the entire firm. While this introduces a new leader to the engagement, the core team and the firm’s underlying methodology often remain the same. True firm rotation, however, means starting fresh with a completely new team, a different approach, and new technology. This process can uncover insights and efficiencies that a long-term incumbent might overlook. For companies with a global footprint, understanding the different rules around rotation is not just good practice—it’s often a requirement that directly impacts your compliance strategy and requires careful planning to execute smoothly.
The Rules and Regulations
When it comes to audit rotation, the rules vary significantly depending on where you operate. In the U.S., the Sarbanes-Oxley Act of 2002 mandates that the lead audit partner on an engagement must be rotated every five years. However, this rule doesn’t apply to the audit firm itself. Your company can technically stay with the same firm indefinitely, as long as the key personnel are switched out. This approach is designed to balance the need for a fresh look with the desire for continuity and the institutional knowledge an audit firm builds over time.
Why It Matters
The primary reason for rotating audit firms is to safeguard auditor independence. Over many years, a close relationship can form between a company and its audit firm. While a good working relationship is beneficial, there’s a risk that familiarity could unintentionally soften the auditor’s professional skepticism. Changing firms periodically helps ensure that your financial reporting is reviewed with a completely objective eye. A new firm brings a different team, a new methodology, and a fresh commitment to questioning assumptions, which is essential for maintaining the trust of investors, lenders, and other stakeholders in your financial statements.
A Look at Global Standards
Outside the U.S., the rules can be much stricter. The European Union, for example, took a firm stance on this by making audit firm rotation mandatory in 2016. Public interest entities in the EU must change their audit firm at least every 10 years. This period can be extended, but the principle of mandatory rotation is firmly in place. For U.S.-based companies, this isn’t just an interesting fact; if you have subsidiaries in the EU that meet certain size criteria, you’ll need to comply with these EU regulations for those specific entities.
Partner vs. Firm Rotation: What’s the Difference?
When we talk about auditor rotation, it’s not an all-or-nothing deal. There are two distinct approaches: rotating the lead audit partner and rotating the entire audit firm. Understanding the difference is key to making the right decision for your company. While both aim to keep audits objective, they have very different implications for your business in terms of cost, quality, and continuity. Let’s break down what each approach means for your organization.
Scope and Definitions
The main distinction between partner and firm rotation comes down to who is changing. With partner rotation, you keep the institutional knowledge and established processes of your current audit firm, but the lead partner and other key engagement team members are swapped out after a set period. In the U.S., public companies are required to rotate their lead audit partner every five years. However, there is currently no requirement for them to change their entire audit firm. For non-public companies and non-profits, neither partner nor firm rotation is mandatory, giving you more flexibility in how you manage your audit relationships.
Staying Independent
The core idea behind any kind of rotation is to maintain auditor independence. When an audit firm works with a company for many years, a deep familiarity can develop. While this relationship can be efficient, it can also create the perception that the auditor is too close to management to remain fully objective. Switching the audit firm is one way to address this. It introduces a completely new team, which helps ensure the auditors are unbiased and can provide a truly independent assessment. This fresh start can reinforce trust with investors, stakeholders, and the board by removing any doubt about the auditor’s impartiality.
How It Affects Audit Quality
The impact of rotation on audit quality is a hot topic. On one hand, a new firm brings a “fresh look,” potentially catching issues the previous auditor overlooked. Some research suggests this can improve audit quality right away. However, there’s also a significant learning curve. A new audit team needs time to understand your company’s unique operations, controls, and industry nuances. Studies show that audit issues are more likely to occur in the first few years with a new firm as they get up to speed, which can temporarily disrupt the quality and efficiency you’re used to.
Comparing the Costs
Changing your entire audit firm costs money. The new firm has to invest significant time and resources to learn your business from the ground up, and those costs are passed on to you. This “learning curve” often results in higher audit fees for the first few years. This is a major reason why many organizations argue against mandatory firm rotation. Partner rotation, by contrast, is far less disruptive and costly. It allows you to retain the firm’s deep knowledge of your business while still benefiting from a fresh perspective at the leadership level, offering a more balanced approach.
The Upside of Changing Your Audit Firm
Making a change can feel like a huge undertaking, but switching your audit firm isn’t just about following regulations—it’s a strategic move that can bring significant benefits to your business. From improved objectivity to access to new technologies, a fresh partnership can reinvigorate your financial oversight and strengthen your company from the inside out. Let’s look at some of the key advantages you can expect when you bring a new auditor on board.
Gain a Clearer, More Objective View
Even with the best intentions, a long-standing relationship between a company and its audit firm can create a familiarity that dulls the edge of professional skepticism. Over time, auditors might unintentionally overlook certain issues or become too comfortable with existing processes. Bringing in a new firm ensures a truly independent viewpoint. A fresh team isn’t influenced by past audits or personal relationships, allowing them to provide a more objective assessment. This renewed objectivity is a core argument in the case for and against mandatory rotation of audit firms, as it helps maintain the integrity and credibility of your financial reporting.
Bring in Fresh Perspectives
A new audit firm means a new set of eyes on your financial statements, internal controls, and overall business processes. This fresh perspective is invaluable for identifying potential issues or inefficiencies that may have been missed by your previous auditors. A new team will ask different questions and apply different methodologies, which can uncover opportunities for improvement you hadn’t considered. They might suggest better ways to organize your data, streamline your reporting, or strengthen your internal controls. This isn’t about finding fault; it’s about leveraging a new viewpoint to make your business stronger and more resilient.
Strengthen Your Risk Management
Changing auditors can be a powerful part of your company’s risk management strategy. A new firm will conduct its own thorough risk assessment from the ground up, free from any preconceived notions. This process can highlight vulnerabilities in your financial systems that were previously undetected, helping you proactively address them before they become major problems. By introducing a new auditor, you add another layer of defense against potential fraud, errors, and financial misstatements. It’s a proactive step that demonstrates to stakeholders, investors, and your board that you are committed to the highest standards of financial governance and oversight.
Integrate New Technology
The audit landscape is changing rapidly, and technology is at the forefront of that evolution. A new audit firm may bring advanced tools and technologies that can make your audit process more efficient and insightful. Modern firms use data analytics, artificial intelligence, and cloud computing to analyze large volumes of data quickly and accurately, identifying patterns and anomalies that would be impossible to spot manually. This use of next-generation audit technology not only improves the quality of the audit but also provides you with deeper insights into your business operations. It’s an opportunity to partner with a firm that uses technology to deliver a smarter, more effective audit.
How to Handle the Transition Smoothly
Switching audit firms doesn’t have to be a disruptive process. With a clear strategy and proactive communication, you can make the changeover feel less like a hurdle and more like a strategic step forward. The key is to anticipate the needs of your team, your outgoing auditor, and your new firm. By managing the process thoughtfully, you can ensure continuity, maintain stakeholder confidence, and set your new partnership up for success from day one. A well-executed transition minimizes downtime and keeps your financial operations running without a hitch. It’s about turning a compliance requirement into an opportunity to strengthen your financial oversight and bring fresh eyes to your processes. This isn’t just about checking a box; it’s about making a deliberate choice to improve your company’s governance. Let’s walk through the essential steps to make your transition as seamless as possible, covering everything from resource planning and knowledge transfer to data protection and stakeholder communication. By breaking it down, you can approach the change with confidence and clarity.
Plan Your Resources
A smooth transition starts long before the new auditors walk through the door. It begins with careful planning. Start by outlining a realistic timeline that gives your team enough runway to manage the switch without disrupting daily operations. Best practices include aligning your Request for Proposal (RFP) process with your decision-making schedule and giving the incoming firm ample time for onboarding. You’ll need to educate the new firm on your business, internal controls, and accounting policies. Dedicate time for in-person meetings to build rapport and cultivate a strong working relationship from the outset. This initial investment of time and resources pays off by preventing misunderstandings and delays down the road.
Ensure a Seamless Knowledge Transfer
The handover from your previous auditor to the new one is a critical moment. Your goal is to facilitate a complete and efficient transfer of information. This typically involves providing the new firm with access to prior-year work papers, financial statements, and other relevant historical data. Work with both firms to establish a clear protocol for communication and document sharing. It’s also wise to discuss how any extra time or costs associated with this knowledge transfer will be handled. Some firms may bill for the time spent answering questions, so it’s best to communicate with your clients in advance to avoid any billing surprises and keep the process transparent.
Understand the Cost Implications
While the new audit fee is a major consideration, it’s not the only cost involved in a switch. You also need to account for the internal resources required to manage the transition, such as your team’s time spent on onboarding, training, and providing information. However, it’s important to view these costs in a broader context. Changing auditors isn’t just an expense; it can be a valuable risk management strategy. A new firm brings a fresh perspective that can help identify potential fraud, errors, or financial misstatements that may have been overlooked. This proactive approach helps protect your company’s financial integrity and can save you from much larger costs in the future.
Protect Your Data
Data security is non-negotiable during an audit firm transition. You will be sharing sensitive financial and operational information, so you need to have robust protocols in place to protect it. Before transferring any files, confirm that the new firm has strong data security measures and sign a non-disclosure agreement (NDA). Establish a secure method for data transfer, whether it’s through an encrypted portal or another protected channel. This is also an opportunity to partner with a firm that uses technology to your advantage. Firms that leverage innovative tools can not only protect your data but also enhance audit quality by using data analytics to conduct more thorough and efficient audits.
Consider the Impact on Stakeholders
A change in auditors is significant news for your stakeholders, including investors, lenders, board members, and even your employees. How you communicate this change is crucial for maintaining trust and confidence in your organization. Develop a clear communication plan that explains the reason for the switch and highlights the due diligence you performed in selecting the new firm. Frame the change positively, focusing on the benefits like gaining a fresh perspective or leveraging new technology. A well-thought-out communications strategy ensures that everyone understands the transition is a planned, strategic move designed to strengthen your company’s financial oversight, not a reaction to a problem.
Create Your Transition Plan
A smooth transition doesn’t happen by accident; it’s the result of a solid plan. Think of it as a roadmap that guides you from your current auditor to your new one with minimal bumps along the way. A well-structured transition plan ensures everyone knows their role, key information is transferred securely, and your business operations continue without a hitch. It’s your best tool for turning a potentially complex process into a straightforward one. By mapping out the key steps, you set the stage for a successful partnership with your new audit firm from day one.
Develop a Realistic Timeline
Timing is everything when changing auditors. Rushing the process can lead to missed details and a rocky start. A good rule of thumb is to begin planning at least six to nine months before your fiscal year-end. This gives you ample time to issue a Request for Proposal (RFP), review submissions, and interview top candidates without feeling pressured. Best practices include aligning your RFP process with key financial reporting dates and building in time to properly educate the new firm on your business. Don’t forget to schedule face-to-face meetings; they are invaluable for building rapport and ensuring a mutual understanding of expectations.
Prepare the Necessary Documents
Getting your documents in order early will make the knowledge transfer process much smoother. Your new audit firm will need access to several years of prior financial statements, previous audit reports, and documentation of your internal controls. You should also prepare a list of key contacts within your finance and management teams. It’s also smart to discuss billing upfront. Talk to potential firms about how they handle any extra work or overages to avoid surprises later. A clear service level agreement can help set expectations and ensure transparency from the very beginning.
Define Your Selection Criteria
Choosing a new audit firm is more than just a compliance exercise; it’s a strategic decision. Start by defining what you need in a partner. Are you looking for deep industry expertise? A firm that leverages cutting-edge technology to create efficiencies? Or a team that can scale with your growth? Switching auditors is an effective risk management strategy that can help identify potential errors or fraud. A new team brings a fresh perspective, so look for a firm that demonstrates critical thinking and a proactive approach. Your criteria should guide you to a partner who not only checks the boxes but also adds tangible value to your organization.
Build a Clear Communication Strategy
How you talk about the change is just as important as the change itself. A clear communication strategy ensures a smooth transition for everyone involved, both inside and outside your company. Internally, keep your board, audit committee, and finance team informed about the timeline and their roles in the process. Externally, you’ll need to communicate the change to investors, lenders, and other key stakeholders to maintain their confidence. A consistent and transparent message prevents misinformation and shows that the transition is being managed professionally. Remember, how you communicate change is crucial for keeping everyone aligned and supportive.
Put Your Plan into Action
With your transition plan mapped out, it’s time to bring it to life. Executing the change requires careful coordination and clear communication across all teams. This phase is all about managing the details to ensure a smooth handover from your previous auditor to your new one. By focusing on key actions like risk assessment, team training, knowledge transfer, and performance monitoring, you can turn a potentially disruptive process into a strategic advantage for your company. Let’s walk through how to handle each step.
Assess Transition Risks
While changing firms can feel uncertain, it’s actually a powerful risk management strategy. A new audit team brings a fresh set of eyes, which can help identify errors or control weaknesses that were previously overlooked. Of course, the transition itself has risks, such as potential operational disruptions or initial knowledge gaps. Address these head-on by creating a risk register. Document potential issues, their likelihood, and your mitigation plan. This proactive approach ensures you’re prepared for any bumps in the road and can keep the process on track from day one.
Train Your Team
A smooth transition depends on everyone being on the same page. Prepare your internal finance and accounting teams by holding kickoff meetings to review the timeline, new processes, and expectations. It’s just as important to educate your new audit firm about your business. According to best practices from RSM, cultivating this understanding in person or through dedicated sessions is key. Share your company’s history, operational nuances, and strategic goals. This two-way education builds a strong foundation for a collaborative and effective partnership, ensuring your new auditors can get up to speed quickly.
Follow Your Knowledge Transfer Protocol
The knowledge transfer protocol you created earlier is your roadmap for a seamless handover. This is where you execute the plan for transferring documents, data, and institutional knowledge. Ensure there are clear and open lines of communication between your team, the outgoing firm, and the incoming one. It’s also crucial to discuss how any extra work or unexpected requests will be billed to avoid surprises down the line. Being upfront about these details helps maintain a positive relationship with both firms and ensures your team isn’t caught off guard by unexpected invoices.
Monitor Performance Post-Transition
Once your new audit firm is in place, the work isn’t over. The first year is critical for establishing a successful long-term relationship. Set clear key performance indicators (KPIs) to measure the firm’s effectiveness, communication, and overall audit quality. Pay attention to how they leverage technology in their process. Firms that use innovative tools can often deliver a more efficient and higher-quality audit, which is a key factor in transforming audit quality. Schedule regular check-ins to provide feedback and address any issues promptly. This continuous monitoring helps ensure the new partnership meets your expectations.
Know Who’s Responsible for What
Changing your audit firm isn’t a one-person job; it’s a coordinated effort that requires clear roles and responsibilities. When everyone knows what they’re supposed to do, the entire process runs more smoothly, from selecting a new firm to getting them up to speed. Think of it as a relay race—a successful handover depends on each person running their leg of the race effectively. Let’s break down who handles what to ensure a seamless transition.
The Board’s Role
Your board of directors, particularly the audit committee, holds the ultimate oversight responsibility in this transition. Their primary role is to act in the best interest of the company and its shareholders. This means they lead the charge in selecting the new audit firm, ensuring the choice aligns with the company’s strategic goals and maintains independence. The board should also set clear expectations for communication, especially around billing. It’s their job to make sure the new firm is transparent about how any extra costs will be handled to avoid budget surprises down the line. This high-level governance ensures the entire process is managed with diligence and financial prudence.
Management’s Responsibilities
While the board provides oversight, your management team handles the on-the-ground logistics. This team is responsible for the day-to-day execution of the transition plan. Their tasks include preparing the Request for Proposal (RFP), scheduling meetings with potential firms, and managing the timeline. One of management’s most critical jobs is to facilitate a smooth knowledge transfer. This involves educating the new firm about your organization’s operations, internal controls, and unique challenges. Fostering a strong relationship from the start through in-person meetings and open dialogue will set the new auditors up for success and make the entire process more efficient for everyone involved.
How Internal Audit Contributes
Your internal audit team is a key player and a strategic partner during the switch. They have an in-depth understanding of the company’s processes and control environment, which is invaluable information for the new external auditors. In fact, switching firms can be a powerful risk management strategy, and your internal audit team is on the front lines of that effort. They can help identify potential risks in the transition, ensure all necessary documentation is prepared, and act as a bridge between the old and new auditors. Their involvement helps maintain continuity and ensures the quality of your internal controls doesn’t slip during the changeover.
Keeping Shareholders Informed
Maintaining trust with your shareholders, investors, and other stakeholders is essential during any significant change. This is where a clear communication strategy comes in. It’s crucial to be transparent about why the change is being made and what to expect. Proactive communication prevents speculation and reinforces confidence in your company’s governance. Your leadership team should craft clear messages for both internal and external audiences, explaining the benefits of the new partnership. A well-executed communications plan ensures that everyone feels informed and confident in the direction your company is heading, turning a simple compliance step into a trust-building opportunity.
Maintain High Standards with a Quality Framework
Changing your audit firm is more than just a logistical exercise; it’s a chance to reinforce your commitment to quality and financial integrity. A smooth transition depends on a framework that keeps your standards high from start to finish. This means being proactive about communication, compliance, and risk management. By treating the change as an opportunity to refine your processes, you can ensure that the new partnership starts on solid ground and contributes to your company’s long-term health. A well-managed transition protects your business from disruptions and sets a new benchmark for financial oversight, demonstrating to stakeholders that you prioritize excellence and accountability. It’s about turning a compliance requirement into a strategic advantage.
Uphold Your Standards
Maintaining your standards during a transition starts with clear communication. Before the engagement even begins, have an open conversation with your new audit firm about expectations. This includes everything from reporting timelines and communication protocols to how they handle unexpected issues or extra billings. Surprises are the last thing you want in an audit relationship. By setting these ground rules early, you create a transparent partnership built on mutual understanding. This proactive approach ensures the new firm aligns with your company’s values and operational style, preventing misunderstandings and helping you uphold your standards of financial discipline from day one.
Verify Compliance
One of the biggest benefits of bringing in a new audit firm is getting a fresh perspective on your financial controls and compliance. A new team isn’t influenced by past practices and can often spot inconsistencies or areas for improvement that were previously overlooked. This change can serve as a powerful risk management strategy to safeguard against errors and potential misstatements. Use this opportunity to have the new auditors thoroughly review your existing compliance frameworks. Their objective assessment can validate your current processes or highlight critical gaps that need attention, ultimately strengthening your internal controls and giving your board and stakeholders greater confidence in your financial reporting.
Mitigate Potential Risks
A successful transition requires careful planning to minimize disruption. Following established best practices can help you sidestep common pitfalls. Start by developing a detailed Request for Proposal (RFP) that clearly outlines your needs and expectations. Timing is also key—avoid making the switch during a major transaction or at the peak of your busy season. Once you’ve selected a new firm, invest time in educating them on your business, industry, and internal processes. Arranging in-person meetings can help build a strong working relationship and ensure everyone is aligned, reducing the risk of miscommunication and ensuring a seamless handover.
Strive for Continuous Improvement
Treating the audit firm transition as a change management project is essential for success. The way you communicate the change internally to your team and externally to stakeholders sets the tone for the entire process. This is your chance to not only switch providers but also to improve your financial oversight processes. Use the transition to review and refine your internal audit procedures, data collection methods, and reporting workflows. By framing the change as a step toward continuous improvement, you can rally your team around a shared goal of strengthening financial governance and setting a higher standard for the future.
What’s Next for Audit Firm Rotation?
The world of auditing is constantly changing, and the practice of audit firm rotation is evolving right along with it. Staying on top of these shifts is key to making smart decisions for your company’s financial health and compliance. The conversation is moving beyond just if you should rotate, to how new tools, rules, and strategies are shaping the process. For any business looking to stay competitive and secure, understanding these trends isn’t just helpful—it’s essential. Keeping an eye on the horizon helps you choose an audit partner who is not just current, but truly forward-thinking. Three major areas are driving this evolution: technology, regulations, and industry practices. Each plays a critical role in how modern businesses approach auditor transitions and what they expect from their partners.
The Role of New Technology
It’s no surprise that technology is at the forefront of change in the audit industry. The days of manual checks and endless paper trails are fading fast. Today, next-generation audit technology like artificial intelligence (AI), machine learning, and data analytics are becoming standard. These tools allow auditors to process huge amounts of data quickly and accurately, spotting anomalies that a human might miss. For your business, this means a more efficient, transparent, and insightful audit. When you rotate to a firm that has integrated these innovations, you’re not just getting a new set of eyes; you’re getting a smarter, more powerful lens to view your financial operations. This tech-driven approach helps auditors gain a deeper understanding of your financial position and identify areas for improvement faster than ever before.
Upcoming Regulatory Changes
As technology advances, so do the rules that govern the industry. Regulatory bodies are paying close attention to how innovation can improve audit quality and are adapting their standards accordingly. Auditors are now expected to leverage new tools to enhance their processes and deliver more reliable results. This push from regulators means that firms unwilling to adapt will quickly be left behind. For your company, this means choosing a partner who is not only compliant with current regulations but is also prepared for what’s coming next. A forward-thinking firm will use technology to not only meet but exceed regulatory expectations, ultimately leading to a higher quality of audit and greater peace of mind for your stakeholders.
Evolving Industry Practices
Beyond tech and regulations, the general mindset around audit rotation is shifting. More companies now view changing auditors as a proactive risk management strategy to prevent errors and financial misstatements. This has led to the development of clear best practices for making the switch. The focus is on creating a smooth and effective transition, which includes carefully timing the change, thoroughly educating the new firm on your business, and fostering strong communication from day one. As these practices become more standardized, the process of rotating auditors becomes less of a disruption and more of a strategic opportunity to strengthen your financial oversight and bring fresh, valuable perspectives into your organization.
Frequently Asked Questions
Is audit firm rotation required for all companies? Not in the United States. U.S. public companies are required to change their lead audit partner every five years, but there’s no rule that says you have to change the entire firm. For private companies and non-profits, there are no mandatory rotation rules at all. However, if your business has operations in other parts of the world, like the European Union, you may be subject to stricter local regulations that do require firm rotation after a set period.
What’s the main difference between rotating the lead partner versus the entire firm? Think of it this way: rotating the lead partner is like changing the captain of a ship while keeping the same crew and vessel. You get a fresh leadership perspective, but you retain the firm’s deep understanding of your business. Rotating the entire firm is like bringing in a brand-new ship with a new crew. It provides a completely fresh start and a different approach, but it also requires a significant investment of time for the new team to learn the ropes.
How much time should we set aside for the transition process? A smooth transition isn’t something you can rush. A good rule of thumb is to begin the process at least six to nine months before your fiscal year-end. This gives your team enough time to issue a Request for Proposal (RFP), interview potential firms, and make a thoughtful decision without feeling pressured. It also ensures your new firm has plenty of time for a proper onboarding and knowledge transfer.
Will switching audit firms end up costing more in the long run? You should anticipate higher audit fees for the first year or two, as the new firm needs to invest significant time to understand your company’s operations and controls. However, it’s best to view this as an investment in your company’s financial integrity. A new firm brings a fresh perspective that can uncover risks or inefficiencies the previous auditor may have missed, potentially saving you from much larger costs in the future.
What is the biggest risk of a poorly managed transition? The biggest risk is a loss of confidence from your stakeholders. A disorganized or rushed transition can signal instability to investors, lenders, and your board, which can damage trust. Internally, it can lead to operational disruptions and a lower-quality audit if the new firm doesn’t get the information and support it needs. A well-managed process shows that the change is a strategic move, not a reaction to a problem.