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
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
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
Smaller businesses could be excluded from government plans for making business transactions digital, found new research from ICAEW
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Further powers are being sought by HMRC, but it is ‘failing’ to use those it already has, such as Conduct Notices, says RPC