Premium
Audit Tendering in the UK: A Review of Stakeholders' Views
Author(s) -
Allam Amir,
Ghattas Noha,
Kotb Amr,
Eldaly Mohamed Khaled
Publication year - 2017
Publication title -
international journal of auditing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.583
H-Index - 21
eISSN - 1099-1123
pISSN - 1090-6738
DOI - 10.1111/ijau.12076
Subject(s) - audit , accounting , business , joint audit , legislation , corporate governance , procurement , stakeholder , audit committee , auditor independence , chief audit executive , independence (probability theory) , audit plan , audit evidence , quality audit , internal audit , public relations , finance , political science , marketing , law , statistics , mathematics
This study reports the results of a content analysis of the comment letters sent to the UK Financial Reporting Council (FRC) in response to its consultation document on the 2012 revisions of the UK Corporate Governance Code, concerning the proposal for mandatory audit tendering. The results indicate a general support for the FRC's proposals with a number of key concerns related to audit quality, auditor independence and audit cost. There is also clear conflicts of interest among some stakeholder groups such as audit firms and companies on one side and institutional investors on the other. There is evidence of conflicts of interest between Big 4 and non‐Big 4 audit firms. Implications for future consultations and legislation are also discussed.