Following its market investigation into the supply of statutory audit services to large companies in the UK, the Competition Commission (‘CC’) has now published its provisional findings.
It reports that competition in the audit market is restricted by a number of factors which deter companies from changing auditors, and by the tendency for auditors to concentrate on meeting management needs ahead of those of the company’s shareholders. Its Notice of possible remedies sets out a range of different options, including the introduction of mandatory tendering for audit services every five or seven years and the mandatory rotation of audit firms every 7, 10 or 14 years.
Interested parties were invited to comment on the Notice of possible remedies and the provisional findings report by 18 March and 21 March 2013 respectively. The CC aims to publish its final report by August this year.
Competition Commission: provisional findings report: statutory audit services market investigation available at: