While proponents of mandatory auditor rotation say it would enhance professional skepticism, a recent study posits that this may not always be the case and, indeed, may have the exact opposite effect, according to CFO.com. According to the authors of the study, which was published in the most recent issue of the Accounting Review, “rotating auditors, aware that they will not be in a long-term relationship, will … likely perceive themselves to be less competent in evaluating the honesty or dishonesty of the [corporate] manager relative to auditors who do not rotate.”

This, they suggest, isn't something that auditors necessarily do deliberately but, rather, is more of a subtle psychological effect that people generally aren't aware is happening.