PracticeAuditAudit choice risks remain despite recommendations, FRC admits

Audit choice risks remain despite recommendations, FRC admits

Third progress report on implementation of audit choice measures shows risks will still be around for some time to come

The Financial Reporting
Council
has warned that the risks posed by audit market concentration are
still prevalent, despite the recommendations put forward by its Market
Participants Group.

In its third progress report on the implementation of the recommendations,
the FRC noted that while there has been significant developments based on the
MPG’s suggestions, some measures will have limited impact in the short term and
the risks of market concentration continue.

‘Despite the progress that has been made, the FRC continues to have
significant concerns about the risks posed by audit market concentration and
believes that these risks are likely to continue for the medium to long term,’
said FRC chief executive Paul Boyle.

Since the last report, the CCAB has issued a voluntary code of practice on
the disclosure of audit profitability and the FRC’s Audit Inspection Unit has
published reports on audit firms that have been subject to a full review.

The FRC said that the majority of the recommendations had now been
implemented, with the rest expected to be in place in the next six months.
However, work was still needed on an international level on the oversight on
global networks.

Further reading

Choice
in the UK Audit Market: Third Progress Report

Related Articles

FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2w Alia Shoaib, Reporter
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

4w Emma Smith, Managing Editor
PwC fined a record £5.1m by the FRC over RSM Tenon audit

Audit PwC fined a record £5.1m by the FRC over RSM Tenon audit

2m Alia Shoaib, Reporter
Which top firms need to improve audit practice?

Accounting Firms Which top firms need to improve audit practice?

4m Alia Shoaib, Reporter
FRC closes investigation into PwC over Tesco accounts

Accounting Firms FRC closes investigation into PwC over Tesco accounts

4m Alia Shoaib, Reporter
BDO overtakes KPMG to take top spot in AIM auditor rankings

Accounting Firms BDO overtakes KPMG to take top spot in AIM auditor rankings

3m Alia Shoaib, Reporter
Demand for audit skills exceeding supply

Audit Demand for audit skills exceeding supply

3m Alia Shoaib, Reporter
FRC launches investigation into PwC over BT audits

Accounting Firms FRC launches investigation into PwC over BT audits

3m Alia Shoaib, Reporter