Statutory audit services for large companies market inquiry - response to Provisional Findings and Remedies Notice

"At this crucial stage of the commission’s investigation we see it is as vital that all interested parties participate constructively in the process."

Richard Sexton, Head of reputation and policy

"We remain very supportive of measured changes that will promote competition and choice, enhance audit quality and increase transparency between auditors, audit committees and shareholders."

Richard Sexton, Head of reputation and policy

"Audit plays a critical role in the effective functioning of the capital markets by building trust between companies and their shareholders and underpinning the delivery of reliable, relevant and timely information."

Richard Sexton, Head of reputation and policy

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On 21 October 2011, the Office of Fair Trading (OFT) referred the market for the supply of statutory audit services to large companies in the UK to the Competition Commission (CC) for further investigation.

On 26 February 2013 the CC published its preliminary findings into the audit market. It important to note these are only provisional findings. We examined the evidence provided by the Competition Commission in detail before making a full response by 21 March 2013.

At this point, the Competition Commission has indicated there are a number of possible remedies it could pursue when it publishes its final recommendations.

The CC will outline provisional details of its proposed remedies in May. There will then be an opportunity for further comment before its final report is published by October.

We have submitted our response to the Competition Commission’s provisional findings and possible remedies relating to the UK audit market for large listed companies.

Click here to access our submission letter.

Click here