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Audit Tendering in the UK: A Review of Stakeholders' Views

Audit Tendering in the UK: A Review of Stakeholders' Views 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Auditing Wiley

Audit Tendering in the UK: A Review of Stakeholders' Views

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References (126)

Publisher
Wiley
Copyright
© 2017 John Wiley & Sons Ltd
ISSN
1090-6738
eISSN
1099-1123
DOI
10.1111/ijau.12076
Publisher site
See Article on Publisher Site

Abstract

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.

Journal

International Journal of AuditingWiley

Published: Mar 1, 2017

Keywords: ; ; ; ; ; ; ;

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