FRC response to Competition Commission final measures to open up audit market
15 Oct 2013
We are pleased the Competition Commission has listened to our and others’ concerns over the appropriate period within which FTSE 350 companies should tender their audits and has brought it in line with the time period in the Corporate Governance Code. The emphasis on audit committee reporting builds on the changes introduced to the Code in October 2012.
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We note that the summary report recognises the valuable contribution our AQR work makes to audit quality. The proposals relating to that work provide more flexibility on implementation than was originally envisaged and we will consider the implications to our resource and funding requirements.
We note the recommendation that the FRC should change its articles of association to have due regard to competition. We will consider this carefully in light of our mission and responsibility to promote audit quality.
We look forward to reading the full final report when it is published.