The Competition Markets Authority (CMA) has recommended a shake-up of the UK audit market.
This includes new legislation to address both the vulnerability of the industry to the loss of one of the Big 4 and the current choice and competition.
In its newly published final report, the CMA recommended the following: the separation of audit from consulting services; mandatory ‘joint audit’ to enable firms outside the Big 4 to develop the capacity needed to review the UK’s biggest companies; and the introduction of statutory regulatory powers to increase accountability of companies’ audit committees.
These ...