While it is technically acceptable to use financial reports audited by the same firm over five years for profitability analysis, caution is advised due to the potential for familiarity threats and reduced audit independence, which may affect the objectivity and perceived credibility of the financial data.
While using financial reports audited by the same firm for five consecutive years can be acceptable for profitability analysis, it may raise concerns about auditor independence and potential bias, so the credibility of such data should be cross-verified with internal controls and market benchmarks to ensure reliability.