Jeremy Newman says clauses should be banned as he issues report on concentration in the UK audit market
The UK accounting industry should have intervened more to increase audit choice by banning ‘Big Four-only’ clauses from bank audit contracts, the departing head of BDO Stoy Hayward has said, as the row over audit concentration flared up again.
The mid-tier firm released provocative new research, carried out by the London School of Economics, showing a direct link between concentration in the audit market and increases in fees. It is the first research to link concentration and increased fees without hedging around the point.
The biggest firms have proved extremely sensitive to the suggestion, insisting there is strong competition in the market.
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