Chair of the Business, Energy and Industrial Strategy (BEIS) Committee Rachel Reeves MP comments on the Competition and Markets Authority announcement of an investigation into the audit sector.
BEIS Committee Chair Rachel Reeves said:
"The CMA’s investigation into the audit market is very welcome. The collapse of Carillion was only the latest sign of a broken audit market. Investors are losing faith in the quality of accounts and the lack of meaningful competition creates conflicts of interest at every turn. The competition authorities looked at the dominant position of the Big Four five years ago and yet, in 2018, 99 of the FTSE 100 companies are audited by these firms. It’s vital that the CMA breaks the stranglehold of the Big Four and is bold in looking at all options as part of their investigation, including the break-up of the Big Four and detaching audit arms from the provision of other services."
In May, the BEIS and Work and Pensions Committees published a report on the collapse of Carillion and called on the Government to require the CMA to review the audit market.
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