The Competition Commission and statutory audit – a lot of sense and sensibility – part 1
The Competition Commission (CC) has recently released its final decisions around statutory tendering of audit services for the UK FTSE – in which we have summarised here (http://insight.proximagroup.com/the-competition-commission-and-statutory-audit-a-lot-of-sense-and-sensibility-part-1). The discussion happening across FTSE board rooms is whether this new proposal is able to create the kind of impact that has been called for; or whether they will simply serve as nothing more than an minor inconvenience to auditors in maintaining the longstanding relationships firms have with their clients.
The new proposals aim to shake up the market and break the oligopoly of the ‘Big 4’, providing an opportunity for small – mid size firms to gain a bigger share of a very lucrative pot. But will these proposals really succeed in creating an open market?