Audit Market Monitoring
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Audit Market Monitoring (AMM) monitors developments in the market for statutory audit services to public-interest entities. Article 27 of the UK Audit Regulation requires the FRC, as the competent authority, to monitor audit-market quality and competition.
AMM specifically focuses on monitoring risks in the audit market which could affect audit quality, resilience, capacity or competition. In doing so, we undertake the following specific work:
- Enhancing our understanding of the structure of the audit market, for both PIEs and all statutory audits;
- Horizon scanning for short, medium and long-term risks, trends and impacts on the audit market; whether they be driven by economic, political, legal, technological, socio-demographic, environmental or reputational sources;
- Monitoring, and periodically reporting on, the state of the UK and global audit markets.
- Liaising with the leadership of the largest UK audit firms to understand their strategies, priorities and the market and competitive factors affecting their firms.
- Undertaking bespoke projects to gather insight and intelligence on audit market challenges, as an evidence base for regulatory decision-making.
- Monitoring the supply chain for the audit market, including the availability and capability of resources at all levels of the firm, including those sourced offshore; and
- Overseeing the implementation of key regulatory policy initiatives that are designed to support the audit market and the profession generally.