A PYMNTS Company

UK: Audit reform shakes up 26 years of stagnancy

By  |  January 21, 2014

Following reforms by the UK’s Competition Commission – ones that could get even more strict – reports say auditor Deloitte is in danger of losing one of its most important clients, ending a 26-year relationship.

Telco giant Vodafone has reportedly placed its audit out for tender after having its books audited by Deloitte – one of the so-called Big Four auditors in the industry – for 26 years.

The Competition Commission moved to shake up the industry after an inquiry found the market was largely dominated by four players; the government faced pressure crack down on the auditors following the financial crisis. The Commission recently decided that companies must place their auditing up for tender at least once every 10 years; that regulation may become stricter, however, following suggestion by the European Commission that companies must be required to change their auditors every 10 years.

Vodafone is the UK’s second-largest listed company, say reports.

Full Content: Financial Director

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.