According to rules, when should partners rotate on listed client engagements?

The requirement for partners to rotate on audit engagements for listed clients is set to maintain independence and objectivity within the audit process. Specifically, regulations stipulate that lead audit partners must rotate after a maximum period of five years. This rotation helps to prevent familiarity threats, where long-term relationships between auditors and clients might impair professional skepticism and lead to biased judgments.

By enforcing a five-year rotation policy, the framework ensures that fresh perspectives are brought to the audits and that the integrity of the audit process is upheld. After this period, a cooling-off period is typically mandated before the same partner can return to the audit engagement. This rotation process helps safeguard auditor independence, thereby increasing public trust in financial reporting.

The other response options reflect longer periods than mandated, which would not align with the regulatory requirements aimed at auditor independence for listed entities.