A CLEAR MAJORITY of businesses across the EU believe there needs to be a more diverse audit market, a survey has found.
According to a survey by Experian of 951 businesses in the EU as part of the Grant Thornton International Business Report, 65% of respondents said they supported a diverse audit, while 51% support mandatory rotation of audit firms.
Support for a more diverse audit market was strongest in Greece, while calls for mandatory rotation were strongest in Spain.
A majority of EU businesses think it would help market confidence if every large public company was audited by two firms rather than one, the report said.
“We welcome any further research and discussions aimed at providing more feedback on the need for change in the structure of the EU audit market,” said Grant Thornton International CEO Edward Nusbaum.
“EU businesses are saying that auditor concentration is an issue, but at the same time we need to point out that auditor rotation unto itself is not the answer, but only one possible part of the solution.”
PwC has been hit with a £2.3m fine by the accountancy watchdog over its audits of the financial statements of Cattles and Welcome Financial Services Limited
KPMG has retained its position as the listed company auditor, according to the latest Adviser Rankings.
While everyone values audit quality highly we must be be careful that we don’t let it deter talent. We need to guard against its commoditisation and the threat to a unitary profession
Commissioning and preparing an asset valuation for financial reporting should involve a three way dialogue between the client, valuer & auditor