Posts Tagged “Competition Commission”

Mandatory audit firm rotation was not among the measures the U.K. Competition Commission (CC) proposed Monday to promote competition in the statutory audit services market.

But the CC did include mandatory tendering every five years for the United Kingdom’s largest companies in its proposal, a significant shift from the 10-year retendering period U.K. Financial Reporting Council (FRC) rules currently require. The FRC’s 10-year retendering rule includes a “comply or explain” provision that provides some flexibility, but the CC proposal does not include a “comply or explain” provision.

Tendering is the process by which a company opens its audit to bidding by audit firms that seek a contract to perform the audit work.

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