CHOICE IN THE UK AUDIT MARKET

Early day motion 2550, tabled 12 July 2006 by Austin Mitchell (Labour). Signed by 20 members.

That this House welcomes the publication of the Financial Reporting Council's recent discussion paper Choice in the UK Audit Market; recognises the valuable role that auditors play in ensuring confidence in corporate reporting and governance, helping to protect and enhance the UK's economic strength in competitive international markets; notes that the big four audit firms, Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers supply audit services to most large companies, including 99 per cent. of the FTSE 100 and 97 per cent. of the FTSE 250; believes that the monopoly of only four companies in this market is anti-competitive, unhealthy and promotes complacency within the industry, all of which could affect audit quality and increase the risk of corporate wrongdoing going unchecked; urges the Government to consider structural reform to set the highest possible standards of accountability and transparency; and calls upon the Government to initiate an urgent debate about how to break up this monopoly and to ensure that the public interest is better served by a fairer, more competitive and more open audit market.

Signatures by party: Labour 11, Conservative 3, DUP 3, Liberal Democrat 2, Plaid Cymru 1.