On 17 May 2011, the Office of Fair Trading (OFT) announced that it had identified competition concerns in the UK external audit market and had provisionally decided to ask the Competition Commission (CC) to carry out an in depth review. In particular the OFT was concerned by the size and influence of the “big four” auditing firms, and barriers to entry and switching in this highly concentrated market. These views have already been made to the House of Lords Economic Affairs Select Committee in response to their recent report on the audit market. The decisive element in whether to proceed to a formal referral is whether the CC is likely to be able to take appropriate remedies should these be required. The OFT will also be liaising with the European Commission and other bodies on the International level in view of the cross-border nature of this market. A definitive decision on a referral is expected to be made later this year.