In a joint statement today, Grant Thornton UK LLP and BDO Stoy Hayward welcomed the publication of a report by Oxera commissioned by the Department of Trade and Industry (DTI) and the Financial Reporting Council (FRC) into competition and choice in the audit market.
Both firms commented, "BDO Stoy Hayward and Grant Thornton welcome this study into the provision of audit services as the start of a process to ensure there is a level playing field for audit firms that want to compete in the public company audit market and have the expertise and credibility to do so. This report highlights dissatisfaction of many stakeholders with the status quo and we hope this will foster debate and lead to change. Crucial to this will be the need for the Company Law Reform Bill to permit proportionate liability as the accepted form of auditor liability limitation; that is the one measure that has the broad support of all key stakeholders and would not unfairly advantage the Big Four."
Michael Cleary, managing partner of Grant Thornton, said "The way the public company audit market is currently serviced is over reliant on the Big Four. This report has confirmed the existence of what could be termed 'institutional prejudice' against the small number of other audit firms which can compete in the public company audit market.
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