PwC responds to Competition Commission final report
Published at 09:39 AM on 15 October 2013
In response to the Competition Commission's final report into the statutory audit services for large companies market, James Chalmers, head of assurance at PwC, commented:
"This is a sensible outcome. After almost two years and a thorough process, the Competition Commission has put forward a significant package of proposals, including mandatory re-tendering every 10 years, increased accountability of auditors to audit committees, and additional responsibilities for the Financial Reporting Council (FRC). Taken together, these measures will enhance competition, transparency and quality.
"The Competition Commission's decision to mandate tendering every 10 years recognises strong concerns from investors, the Financial Reporting Council, companies and the market that a five year interval would have created a disproportionate burden to business, and risked undermining the intensity of competition and audit quality.
"The introduction of the FRC's 10 year “comply or explain” regime in October 2012 has had a substantial impact on the market, with 24 FTSE 350 audits put out to tender in the past 12 months and many more expected.
"We are pleased that the Competition Commission has ruled out mandatory firm rotation, joint auditing and further restrictions on non-audit services, which would have been detrimental to competition and audit quality. Our focus is to work with investors, companies and regulators to enhance audit quality and ensure the audit is a hallmark for trust in business."
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