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UK: Commission may force companies to rotate auditors in fight against Big Four

By  |  February 27, 2013

As UK regulators struggle on how to break up what is known as the “Big Four” auditing firms – or whether that break-up is even possible – new reports are emerging that the Competition Commission is considering solving the issue of companies that are reluctant to change auditors by forcing a rotation of auditors. The Competition Commission released its provisional findings on the auditing sector and report that companies are often reluctant to change their auditors has they encounter difficulties in side-by-side comparisons with other firms. Within its report, the Commission lists several possible solutions, including “mandatory audit firm rotation” and “mandatory tendering.” The Commission is scheduled to release its final report by October. The Big Four firms have disagreed with the Commission’s provisional findings.

 

Full Content: Journal of Accountancy

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