Grant Thornton and BDO welcome audit market report

Grant Thornton
and
BDO
Stoy Hayward have issued a joint statement welcoming the report
into competition and choice in the audit market, saying it was a ‘step in the
right direction’ in opening up the market.

The report has recommended 15 suggestions, including firms revealing
profitability on audit work, and helping audit committees that are using more
than one firm on its audit.

‘The FRC
must not rest on its laurels,’ said BDO Stoy Hayward managing
partner Jeremy Newman.

‘It is vital that all the recommendations are followed up with some urgency.
It is now a year since the Oxera Report was published and whilst there has been
much debate there has been no tangible action taken to address the real issues
recognised by the FRC and others.’

Grant Thornton CEO Michael Cleary said that a Big Four was not the long term
answer to choice and quality in the audit market, but the capital markets could
manufacture a move away from this in the medium term.

‘Today’s report shines light on the next steps to achieve this change,’ said
Cleary.

Further reading:

FRC calls for audit profitability
disclosure

Oxera: The return – it’s nothing to
FEAR

Oxera returns in ownership probe