reform of the EU auditing market launched a year ago
hasn’t yielded the expected results, with the
so-called Big Four accounting firms still dominating the
The EU regulation on audit reform, which came into effect in
June 2016, two years after it was introduced, aims to shake up
existing relationships between the larger companies and their
go-to auditors. It compels those companies to put their
statutory audit out to tender every 10 years at least, and
change auditor every 20 years. Figures put the value of
contracts initially expected to change hands at £10
billion ($12.8 billion).
But market participants now believe this may not entirely
have had the desired effect of creating a more consistent
market in the EU.
"The regime favours those larger accounting firms that have
a panoply of compliance procedures in place," said Michael
Butler, partner at Moore Stephens. "The reform...