Commission probes investor-auditor relations

An investigation into the UK audit market by the Competition Commission has shed some light on the usually discreet relationship between investors and audit firms.

As the European Commission finalises new rules for the audit profession, some experts have said that investors could help improve audit quality by scrutinising auditors’ performance and challenging decisions if there are suspicions of errors or fraud.

Documents published by the Competition Commission as part of its investigation into the audit industry include a case study on how investor Legal and General Investment Management (LGIM) raised concerns about audits of companies it invested in.

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