• Register
Return to: Home > News > Grant Thornton UK calls for independent auditor selection

Grant Thornton UK calls for independent auditor selection

Grant Thornton UK has called for an independent public body to be established to appoint auditors for large companies, according to a report by the Financial Times.

The proposal is an attempt to break the dominance of the Big Four in the audit market of FTSE 100 companies.

The UK audit market has come under fire following parliamentary enquiries into the state of audit quality and independence. This has prompted the Big Four and a number of other large firms to hold meetings with the Institute of Chartered Accounts in England and Wales (ICAEW) to try to resolve the lack of competition in the UK audit market.

In July the FRC found that only seven of the FTSE250 companies were audit by non-Big Four firms, with Grant Thornton having fou clients and BDO  three.

Grant Thornton’s head of quality and reputation Jonathan Riley told the Financial Times that an independent public body would address the “perennial issue that audit clients select and pay the auditor”.

Other solutions have also been proposed by the leading firms in the meetings held with the ICAEW, which have reportedly included imposing a temporary client cap for the Big Four on FTSE 350 clients to allow mid-tier firms to move into this market.

The increased scrutiny of the Big Four comes as 2018 has been marked by big corporate collapses such as Carillion and almost record breaking fines by the FRC to some of the top four firms. In June PwC UK was fined £6.5m for their audit of BHS.

This publication approached Grant Thornton, the Big Four and industry bodies for comment but failed to receive response by the time of publication.

Top Content

    Blockchain and the Big Four: does it deserve all the hype?

    Although still in its infancy, blockchain is one of the most talked-about technologies of 2018. Will the blockchain bubble burst, or will it live up to its reputation as the ‘new internet’? Eleanor Jerome investigates

    read more

    Malaysia: Ready to show its strength

    Recent changes have enhanced the quality of audit reports in Malaysia, giving the profession a welcome opportunity to demonstrate its value to clients. Paul Golden reports

    read more

    China: Regulating the Chinese dragon

    Harsh regulatory actions and looming US trade wars have been dampening expectations in a Chinese market still full of potential, finds Jonathan Minter

    read more

    Indigenous Australians: New checks and balances

    With fewer than 40 known qualified Indigenous Australian accountants, Jonathan Minter speaks to Shelley Cable from PwC Australia about how increasing this number is an important part of improving the financial literacy of Indigenous communities

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.