The Institute of Chartered Accountants of Scotland (ICAS) has called for the mandatory rotation of audit engagement partners to be extended beyond five years.
ICAS, which has 16,000 members around the world, said that the current arrangement posed a "serious threat to audit quality in the listed company sector".
This is because a thorough knowledge of the business is vital if an auditor is to undertake an effective audit, ICAS' James Barbour said.
"Concerns have been expressed in recent months that the existing rotation requirements in the UK may inadvertently have a negative impact on audit quality - particularly in specialised sectors - because key audit partners are removed without always having someone of sufficient experience of the industry to replace them," he claimed.
"Consideration should therefore be given to extending the mandatory period of rotation beyond the existing 5 year requirement."
Too much emphasis on ticking boxes
As well as this, ICAS has warned that current auditor requirements place too much emphasis on "compliance procedures and ticking boxes". This means that judgement is used by auditor less, increasing the potential for untoward behaviour.
Last month ICAS criticised HMRC's plan to introduce a single penalty regime for non-payment of taxes, saying it did not specify what constitutes reasonable behaviour.
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