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Enhancing Competition

The UK statutory audit market may work well as a whole, but reforms are needed to enhance both this and audit quality, says Nigel Sleigh-Johnson

The Competition and Markets Authority (CMA) is carrying out a study of the UK statutory audit market to see if it is working as well as it should (for more on its three areas of focus, see page 20). If the study finds the market is not working well, it will scrutinise proposals to improve it, including a possible need for legislation.

Some change is necessary. Urgent action to address public concerns around concentration in some parts of the audit market is vital to maintaining the confidence of investors and wider stakeholders. It is also vital that future market reforms do not have a negative impact on audit quality or damage perceptions of the UK as a place where business and investment is well-regulated and attractive.

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