Return to: Home > News > Standards > EC AUDIT REFORM: Audit community backs mandatory retendering

EC AUDIT REFORM: Audit community backs mandatory retendering

Author: IAB editorial
Published: 8 Feb 2011
Email
Print

Most audit market participants oppose joint audits as means of tackling audit market concentration but mandatory retendering has received some support.

A majority of respondents to an EC green paper on audit reform believe joint audits could decrease audit quality, increase costs and expose differences in audit approaches that could confuse auditor responsibilities.

The mid-tier are the only group of respondents to back joint audits and say the approach has worked well in France in lowering market concentration. The mid-tier believes joint audits would give firms an opportunity to prove to larger clients that their audit quality is up to scratch.

Open to retendering

Respondents have also said they would be open to the idea of mandatory retendering on a regular basis.

Public authorities, preparers, businesses and organisations of companies said the selection criteria should be defined ahead of the tendering process in order to justify the decision, and this process should be communicated to ensure potential candidates are not discriminated against.

Other Latest News

Top Content

Time pressure: Facing up to mental health

In an ‘always on’ culture, it is becoming increasingly difficult to manage a healthy work-life balance. While companies are beginning to address this problem by introducing different support systems, Joe Pickard finds more could be done to ensure the wellbeing of the professions workforce.

Venezuela: the race for the dollar

With a new currency following hyperinflation, large sections of the population emigrating to neighbouring countries, an economy on the brink of collapse and no apparent solution coming from the government, Jonathan Minter finds a profession struggling to stay afloat in Venezuela.

Brazil: transparency and control

Brazilian accountants have an optimistic view of the impact of more-regular reporting and the implications of audit controversies for the profession. Paul Golden reports.

Argentina: looking for a clearer view

The Argentine accounting profession continues to grapple with the impacts of a weak economy and a culture of financial corruption. Paul Golden takes a closer look.

Blockchain: adapting to disruptive tech

In the relatively few years since digital currencies first began using blockchain technology, the array of potential applications has grown significantly – and continues to expand. Dan Balla, Matthew Schell and Dave Uhryniak from Crowe look at how it impacts accountancy.