The Competition Commission (CC) has backtracked on its requirement for companies to tender for a new auditor every five years and instead is calling for FTSE 350 companies to tender every 10 years.
Following a long investigation into competition in the market, the final report published this morning will for many be seen as a victory for the Big Four accounting firms.
The commission claims to have been “listening carefully” to industry feedback over the last two years and decided that 10 years is an appropriate period. However, despite backtracking from its original proposals, the watchdog said it still believes many companies would benefit from going out to tender more frequently at every five years.
The main measures the CC has proposed are as follows...