Matthew Fell, CBI Chief UK Policy Director, said:
“High quality audits are fundamental to good business. Where we have seen failures, even if isolated, they can undermine public confidence.
“The CMA and Kingman reviews offer an opportunity to reset the audit market. The CMA has recognised the benefits of an integrated audit model and is right to ignore misplaced calls for a break-up of the major firms. Instead they have opted for a more targeted approach to improving competition through a new market share cap and by introducing joint audits.
“At the heart of this reset must be a focus on tackling the expectation gap that is undermining trust in corporate reporting. The CMA should work with the audit community to scope out what a good audit should deliver in the future.
“An important early test for the new Audit, Reporting and Governance Authority will be to establish itself on the international stage and cement the UK’s reputation as a world leader on corporate governance.”