Competition Commission audit reforms — not as strict as first anticipated
The Competition Commission (CC) has been concerned about the lack of competition in the audit market for some time. It reports that this lack is due to factors that inhibit companies from switching auditors and the incentives auditors are having to focus on satisfying management rather than shareholder needs. The CC Final Report (published on 25 October 2013) confirms the CC position that all FTSE 350 companies must put their statutory audit engagement out to tender at least every 10 years — no company will be able to delay beyond 10 years.
This is a retreat from the previously contentious position that audit contracts should be tendered every five years. As a compromise, the CC has confirmed that companies should consider going out to tender every five years and if they choose not to at that time the Audit Committee will be required to report the year it plans to conduct the tender and confirm why that is in the best interest of shareholders…
If you are registered and logged in to the site, click on the link below to read the rest of the Wragge & Co briefing. If not, please register or sign in with your details below.
News from Wragge Lawrence Graham & Co
News from The Lawyer
Briefings from Wragge Lawrence Graham & Co
In part two of this series, Martin Chitty takes a closer look at what action has been announced and the options open to employers.
Dispute resolution in the UAE: what are the options? Part three — enforcing an arbitration award in the UAE
Different regimes apply in the UAE for enforcing international awards and local awards (i.e. awards made within the UAE).