1 November 2018
Mazars has today submitted its response to the Competition and Markets Authority (CMA) statutory audit market study. The firm applauds this initiative and is fully supportive of changes which propose to create a genuinely competitive audit market that addresses stakeholders’ needs.
Previous attempts at reform have not brought about the necessary change. We look forward to working with the CMA and our peers to create solutions that can be implemented successfully and are guaranteed to make a real difference.
Our position is as follows:
- The implementation of a cap to total audit market share, allied with a joint audit system, lies at the heart of meaningful reform. The cap should reduce the Big 4 market share in both the FTSE350 and the rest of the listed market to 80% after 5 years, with joint audit introduced at the upper end of the FTSE350. Both solutions are tried and tested, and have the highest chance of delivering change where there is a significant concentration of total audit fees
- Shareholders should continue to appoint their auditors but an investor-led Commission for a Fair Audit Market should be introduced to oversee the implementation of the reforms
Mazars is an active and willing market participant, and will play its part in generating trust and confidence in capital markets in the public interest.
Phil Verity, Mazars UK Senior Partner, said: “We believe that substantial reform to the audit market is critical to the sustainable success of our largest companies and the wider economy. This debate has implications far beyond the UK’s borders, and it is our responsibility to provide meaningful leadership on what is a global issue.“We are pleased to share the detail of our response, and welcome discussion on proposed solutions and implementation”.
Mazars' Response to CMA Review