Audit market shakeup plans due in July

In a change to the original schedule, the Competition Commission will be making an announcement in July about the changes it recommends introducing in order to encourage greater competition in the audit services market.

The CC's provisional findings, circulated in February, included a notice of possible remedies which shows the regulator was exploring a combination of options. These included mandatory tendering; mandatory rotation of firms; expanding the remit of the Audit Quality Review team and the external auditor; prohibiting 'Big Four-only' clauses; extending reporting requirements; and enhancing shareholder and auditor engagement.