PracticeAuditFTSE-100 audit chairs question audit market reform

FTSE-100 audit chairs question audit market reform

Chairs of the largest companies in the UK have raised concerns on possible changes to the audit market

FTSE-100 audit committee chairs have questioned the rationale behind proposals currently being considered by the European Commission (EC) to reform the audit market.

Many of the chairs believe that given the lack of evidence that failings in audit either caused or helped to speed up the credit crisis, means no case for reform has been made, according to research commissioned by the ICAEW.

However, the research suggested that the current level of market concentration is not ideal, with BDO the only firm outside the Big Four to audit the FTSE-100.

The research also made a number of recommendations, including increased competition and choice, continuing focus and reassurance on auditor independence and greater use of third-party and peer review of audit practices.

ICAEW chief executive Michael Izza (pictured), said: “When considering its proposals, the European Commission cannot ignore the voice of business. As this research shows, there is scepticism over the rationale for these proposals, but a recognition that change is needed in a number of areas to ensure UK audit quality remains world leading.”

A final version of the EC’s audit reforms is expected soon and will be considered by the College of Commissioners on 23 November.

Related Articles

Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
The future of the audit industry: From masses of data, to meaning

Audit The future of the audit industry: From masses of data, to meaning

1y Acccountancy Age
Deloitte scoops GSK 'mega audit' from PwC

Audit Deloitte scoops GSK 'mega audit' from PwC

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

2y Kevin Reed, Writer
BDO appointed new auditor of Game Digital as Deloitte ditched

Audit BDO appointed new auditor of Game Digital as Deloitte ditched

2y Stephanie Wix, Writer
BDO's 'agility' makes it well placed to succeed - Eagland

Accounting Firms BDO's 'agility' makes it well placed to succeed - Eagland

2y Kevin Reed, Writer
Government outlines FRC status as competent authority for audit regulation

Audit Government outlines FRC status as competent authority for audit regulation

2y Richard Crump, Writer
Friday Afternoon Live: Accountants in government; audit market concentration; Top 40 Networks

Audit Friday Afternoon Live: Accountants in government; audit market concentration; Top 40 Networks

2y Kevin Reed, Writer