To ask Her Majesty's Government what assessment they have made of the concentration of the auditing profession; and whether any such concentration is eroding confidence in audits.
The Competition and Markets Authority launched an investigation into competition in the audit market for companies in the FTSE 350 in 2011. It published its conclusions in 2013. The report is available at www.gov.uk/cma-cases/statutory-audit-services-market-investigation and can be found attached.
The new EU Audit Regulation requires the competent authority for each Member State to monitor the audit market for all Public Interest Entities (banks, building societies, insurers and companies with securities traded on an EU regulated market). As the UK competent authority, the Financial Reporting Council (FRC) publishes its findings in its annual Key Facts and Trends. It also publishes an annual report on Developments in Audit. Both are available on the FRC’s website, as are annual reports on the quality of audits by each of the six largest audit firms.
This information is used to contribute each to a triennial report by the European Commission on monitoring developments in the EU market for statutory audit services to public-interest entities pursuant to Article 27 of the new EU Audit Regulation. The 2017 report can be accessed at https://ec.europa.eu/info/publications/170907-statutory-audit-services-report_en and can be found attached.