FRC lays down Big Four challenge

Accounting’s watchdog has told the Big Four they need to show they can manage
risks or face the potential of outside regulation.

The Financial Reporting Council today released a discussion paper following
last month’s publication of the Oxera report into audit competition. The paper
said the loss of a Big Four firm would cause uncertainty in the capital markets
and posed the risk of market disruption.

In the paper, the FRC said that it would have to look into whether market-led
action or outside regulation would mitigate the risks of a Big Four firm

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