CBI responds to audit reform proposals
The CBI responded to the proposals adopted by the European Commission for audit market reform.
Matthew Fell, Director for Competitive Markets, said:
"These proposals are the latest in a long line of unnecessary distractions coming out of Brussels that will only serve to add to business costs at a time when the focus should be on promoting growth and job creation.
"The Commission's own impact analysis estimates that this could cost up to €150,000 a year in extra compliance costs for each large company.
"We're particularly concerned that the prohibition of non-audit services and the requirement for audit-only firms will threaten the breadth of expertise and quality of services currently available to businesses, without boosting competition.
"It's good practice for companies to regularly test the market to determine their auditor, but this should be on the basis of frequent tendering rather than mandatory rotation."