Responding to the CMA’s audit recommendations, John Allan, CBI President, said:
“The UK’s position as a world leader on corporate governance is highly-prized. But with the eyes of the world on the UK, some CMA proposals risk damaging that reputation.
“Improving the quality of audit to enhance public trust and investor confidence must be paramount. But the guiding star for any reforms must be a focus on what works.
“Mandating joint audits will add cost and complexity for business with no guarantee of better outcomes. Operational splits could restrict access to the skills required to carry out complex audits.
“Other ideas, such as greater scrutiny of audit committees by the regulator have merit and could help guard against high-profile corporate failures, which have rightly prompted searching questions.
“With the Brydon review yet to report a false move now could create yet more uncertainty and undermine confidence in corporate Britain.”