The Competition and Markets Authority (CMA) has published its final report with recommendations for changes to be made to the UK’s audit industry.
Responding to the report and its recommendations, Marcus Scott, Chief Operating Officer, TheCityUK, said,
Radical solutions imposing operational splits on the big audit firms may make for good headlines, but they are poorly focused, with no evidence that they will lead to genuinely enhanced audits. Change should be embarked upon with care, conscious of the risks of unintended consequences and with an eye to maintaining the huge value these firms provide. As such, reform should focus on quality, transparency and accountability - three vital areas that will bring benefits for audited companies, investors and lenders.
“To ensure a positive outcome, any proposed changes should be made carefully to mitigate unintended consequences to UK competitiveness, its attractiveness as a place to invest and the wider economy.
“The audit sector is a vital part of the UK’s wider financial and related professional services ecosystem which relies on audit to make investment and lending decisions. It is a national asset - one which is the envy of other countries. It makes a considerable contribution to the economy and to the success of businesses of all sizes across the whole of the UK.”