Investors and managers oppose five-year tenders for audits

Some of the UK's biggest companies and major investment groups have criticised the Competition Commission's (CC) proposals to introduce mandatory five-yearly audit re-tendering, saying this is likely to prove costly and disruptive to business without increasing competition.

In its letter of response to the CC's provisional decision on remedies for the statutory audit market, Royal Dutch Shell CFO Simon Henry warns of the 'possible unintended consequences of certain aspects of the proposal'.