Big Four dominance of the £269m FTSE 250 audit market is under fire as MPS set alight competition and mid-tier firms fail to gain market share. In the annual Accountancy FTSE 250 auditors survey, Philip Smith examines the latest trends in audit fees and the lack of competition from outside the Big Four
The recent events at Carillion and the subsequent joint select committee investigation have reignited attempts to reform the audit market for the UK’s largest plcs. Despite moves to create more competition, wider choice and greater quality, there has been no real shift in market share, no new entrants and no desire for audit committees to look beyond the Big Four audit firms. Market solutions have not worked, so is it time to throw out the current regulations and look for a more radical approach.
The audit market for FTSE 250 companies, those in the second tier of corporate UK plc after the FTSE 100, is now worth £192m, according to Accountancy’s latest survey of how much UK plc pays to have its books audited. That is marginally down on last year’s survey figure of £194m, but this difference is largely due to constituent changes in the index, as on average, those companies in the FTSE 250 saw their audit fees increase by 7%.
But
