Lesson: Audit Partner Rotation

This lesson covers the concept of audit partner rotation, which aims to maintain objectivity and independence in the audit process. The discussion illustrates the importance of not allowing audit partners to become too close to their clients, as this may lead to a risk of fraud. The Sarbanes-Oxley Act requires lead auditing and review partners to rotate every five years, while all other audit partners must rotate every seven years. The lesson also defines what constitutes an audit partner and highlights exemptions for small firms that have less than 10 partners and five or less SEC clients.