PracticeAuditAudit industry remains top heavy: FRC

Audit industry remains top heavy: FRC

Regulator notes significant market risk if Big Four firm collapses

The Big Four continue to dominate the UK audit market with lesser firms
failing to make significant inroads, the reporting regulator has warned.

The Financial Reporting Council (FRC) has released its fourth report into
audit choice, with statistics showing incremental movements in auditors’ market
shares.

Overall the picture is one of stagnation with little change in the primacy of
the Big Four , or the standing of their middle weight competitors.

On the back of the report Paul Boyle, chief executive of the FRC, renewed his
warning of the “significant” risk should a Big Four firm collapse.

“The FRC remains concerned about the significant uncertainty and cost which
could arise in the event that one or more of the Big Four audit firms left the
market,” he said.

“Regardless of the actions taken by market participants, this risk is likely
to remain significant in the medium to long term. It remains to be seen whether
market-led actions will prove to be sufficient to reduce this risk to an
acceptable level.”

Read the full report:
CHOICE
IN THE UK AUDIT MARKET

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