# Restrictions on the Incoming Auditor (Rotation Provisions)
When an auditor's term ends due to mandatory rotation under Section 139(2), the law imposes safeguards to ensure that the rotation is genuine and not a mere change in name. The incoming auditor must be sufficiently independent of the outgoing auditor.
## Rule 1 — No audit firm with common partners
No audit firm having common partners with the outgoing audit firm to whom rotation applies can be appointed as the incoming auditor for a period of 5 years.
## Rule 2 — No firm under the same network
The incoming auditor cannot be associated with the outgoing auditor under the same network of audit firms. A 'network' here means firms that operate under any of the following:
- Same brand name
- Same trade name
- Common control
## Rule 3 — Partner-in-charge migration
If a partner in charge of the outgoing audit firm (who certifies the financial statements) retires from the outgoing firm and joins another firm, that other firm becomes disqualified from being appointed as auditor for 5 years.
## Why these rules exist
These provisions prevent firms from circumventing mandatory rotation by simply shifting the same audit team or partner into a 'related' firm. The legislative intent is to bring genuinely fresh eyes on the audit.