So the Financial Reporting Council appears to have conceded that measures introduced three years ago to improve the audit market have had little or no effect.
Not only that but corporate governance measures introduced to make companies more transparant about their auditors seem to have failed dismally too. Few of the disclosures envisaged have been made, and where companies have revealed something it is usually only in the most superficial way.
For example, and perhaps most significantly, we know precious little more on whether the banks are forcing companies to employ Big Four auditors. The audit world is full of stories about knock backs because of these apparent "contractual obligations". And yet somehow the FRC cannot find out if it actually happens - though anecdotally it continues to hear about it. One can only suppose this sorry state is a result of expecting companies to volunteer the information.
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