OFT decides audit market is 'distorted and restricted'

by Kevin Reed

More from this author

17 May 2011

  • Comments
Office of Fair Trading

COMPETITION PROBLEMS in the audit market have seen the Office of Fair Trading decide that referral could be made to the Competition Commission.

After considering evidence, the OFT said that there were reasonable grounds for suspicion that features of the market "restrict, distort or prevent competition in the UK".

Clive Maxwell, OFT executive director, said: "As we told the House of Lords Economic Affairs Committee, we have been concerned for some time about the extent of competition in this market, with only four large players and substantial barriers to entry and switching."

However, the OFT will work with the audit profession and stakeholders to decide how the situation can be resolved, either with or without the Competition Commission's involvement.

A key issue will be whether remedies will be open to the Competition Commission, and assess whether action needs to be taken at either national or international level.

"We believe that the statutory test for a Competition Commission reference has been met, but are keen to understand more about the remedies available in the market and, consequently, whether or not a reference to the Competition Commission would be an appropriate response to our concerns."

Further details on how the OFT reached its decision will be published alongside its consultation on why it will, or will not, make a reference to tha Competition Commission.

 

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send
HM Revenue & Customs

Head Of Financial Control

HM Revenue & Customs, Telford, Full Time, Permanent/p>

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.