Tweedie criticises "cosy" auditor ties Sir David Tweedie, one of the world's most prominent accountants, has added his voice to criticism of the decades-long relationships that bind auditors to the companies they are supposed to be vetting. After a decade overseeing accounting rules used in the European Union, Canada, Brazil, South Korea and other countries, Sir David becomes president of ICAS, a leading professional body, this month. In an interview with the Financial Times, the former chairman of the International Accounting Standards Board criticised the 48 years that a FTSE 100 auditor remains in place on average. "I think 48 years is pretty cosy," he said. In such long-term relationships, Sir David said he did not believe that the independence of auditors was sufficiently protected by rules requiring lead audit partners to be changed after several years. I don't think the rotation of the partners hacks it really. It has got to be more than that," he said. Critics of the monogamous relationships that exist between many auditors and companies include the House of Lords economic affairs committee, whose concern has helped prompt a competition investigation into UK auditing. Countries around the world are preparing reforms designed to force boards to switch auditor more frequently following a backlash against the audit profession's failure to give warning of the financial crisis. The European Commission favours mandatory auditor rotation every six to eight years. The US is also considering mandatory rotation. Sir David, however, backed an alternative approach under which a company's audit committee would set out a policy on the likely length of audit contracts. The board directors who sit on the committee would then have to live up to this policy or explain themselves to shareholders. Either way, keeping the same auditor for more than 15-20 years would need a "jolly good reason," he said. The Financial Reporting Council, a UK regulator, backs a similar "comply or explain" approach. At the IASB Sir David earned a reputation for a willingness to ruffle feathers. His new role at ICAS - formerly the Institute of Chartered Accountants of Scotland - gives him a brief to comment on auditing matters as well as accounting standards. The former KPMG partner highlighted potential conflicts of interest at big companies where additional advisory work is carried out by their auditor. I do feel very strongly that the audit is a public service. It is not there [for auditors] to be advisers. It is a privilege. You have got a monopoly. It [audit quality] must be protected. However, he said auditors can fulfil a vital advisory function at smaller companies. Sir David also said he thought Asia would eventually yield a rival to the four biggest auditors, PwC, Deloitte, Ernst & Young and KPMG. The possibility of China creating a fifth global auditor through an alliance with a second-tier western network is a source of recurrent speculation within the profession. The 158 year-old ICAS is advising the Chinese finance ministry on how to apply the principles-based accounting system used by the International Accounting Standards Board. China has largely aligned its accounting rules with the IASB's norms, known as International Financial Reporting Standards.