Audit industry remains top heavy: FRC

The Big Four continue to dominate the UK audit market with lesser firms failing to make significant inroads, the reporting regulator has warned.

The Financial Reporting Council (FRC) has released its fourth report into audit choice, with statistics showing incremental movements in auditors’ market shares.

Overall the picture is one of stagnation with little change in the primacy of the Big Four , or the standing of their middle weight competitors.

On the back of the report Paul Boyle, chief executive of the FRC, renewed his warning of the “significant” risk should a Big Four firm collapse.

“The FRC remains concerned about the significant uncertainty and cost which could arise in the event that one or more of the Big Four audit firms left the market,” he said.

“Regardless of the actions taken by market participants, this risk is likely to remain significant in the medium to long term. It remains to be seen whether market-led actions will prove to be sufficient to reduce this risk to an acceptable level.”

Read the full report: CHOICE IN THE UK AUDIT MARKET