FRC publishes research report on barriers to competition in UK audit market
02 Feb, 2024
The Financial Reporting Council (FRC) has published a summary of key findings and potential actions from research it commissioned into barriers to entry and growth faced by audit firms in the UK.
The research was undertaken in support of the FRC's strategic objective to create a more resilient audit market through greater competition and choice and sought to enhance understanding of entry, growth and exit of firms in the Public Interest Entity (PIE) and non-PIE audit markets by obtaining the views of smaller audit firms and non-audit firms.
The report highlights several obstacles for smaller firms to expand their presence including capacity constraints, recruitment and retention challenges and regulatory requirements. This was especially true for PIE audits.
The FRC highlights that in order to promote greater competition and choice in the audit market, it is important that there is a collaborative, cross-system approach involving the regulator, audit firms, professional accounting bodies, and the government.
A press release and the report are available on the FRC website.
