In his presentation to the Competition and Market Authority (CMA) magazine, Deloitte stated that imposing a limit on the number of audit clients a company can take should address choice and competition issues, reduce entry and entry barriers. addressing concerns about UK resilience audit market.
Furthermore, the prohibition of non-auditing services provided to FTSE 350 and large customers of unlisted public interest auditing firms would resolve issues relating to conflicts of interest.
Yesterday KPMG announced that it is blocking non-audit work for FTSE 350 customers, to "also remove the perception of a possible conflict".
However, it is not expected that Deloitte will follow the example and implement any changes before the CMA publishes its conclusions by the end of the year.
Deloitte has claimed conflicts of interest between the responsibilities of public interest reviews and the advisory services they provide occur "very rarely", but admitting a ban would help improve public confidence in the UK audit market .
He added that this would require a clear definition of large private companies of public interest and "audit services".
"We would suggest that in addition to the annual audit, this would include the six-monthly review, bond offerings, grant applications, the reporting of historical financial information, work on the supply of circulars and similar services. without exception, they would be forbidden ", wrote the company in his reply.
However, Deloitte said the Big Four division is not "viable" and would result in a deterioration of the quality of the audit ".
"We are firmly convinced of this [the CMA’s proposals] it would not be effective in improving the quality of the audit or increasing effective competition or resilience in the market. On the contrary, both would damage the quality of the audit. "
According to the annual report of the Financial Reporting Board, Deloitte collected £ 214 million in revenue from auditing for auditing customers last year – less than 10% of its total turnover of € 2.9 billion of pounds.