On the the surface, there is little reason for audit to get the blood pumping. The reality, however, is quite different, and threatens to present the sector’s biggest players – sprawling multi-nationals used to finding that all news is good news when you count the beans – with the toughest challenge they have seen in years.
Earlier this month, the Competition and Markets Authority (CMA) announced it would undertake a market study into the sector, addressing a range of issues surrounding audit’s Big Four – Deloitte, EY, KPMG and PricewaterhouseCoopers (PwC) – which have been accused of having a cartel-like position: dominating the market for listed companies, leaving smaller firms unable to get a look-in.
The review aims to make a quick strike at the sector: demanding evidence from key bodies by the end of the month, with a report set for the end of the year.
Read more: Competition watchdog launches investigation into audit sector
The spark…
Why the fuss? In a word: Carillion. All the Big Four were in some way tied to the sinking ship that mega-constructor Carillion proved to be.
KPMG were external auditors, Deloitte were internal auditors and EY had been tasked with turning…
