• Register
Return to: Home > News > Advisory > 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

    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.

    read more

    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.

    read more

    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.

    read more

    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.

    read more

    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.

    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.