TY - JOUR
T1 - Audit Tendering in the UK: A Review of Stakeholders' Views
T2 - Audit Tendering in the UK
AU - Allam, Amir
AU - Ghattas, Noha
AU - Kotb, Amr
AU - Eldaly, Mohamed Khaled
PY - 2017/3
Y1 - 2017/3
N2 - 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.
AB - 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.
UR - https://onlinelibrary.wiley.com/doi/10.1111/ijau.12076
U2 - 10.1111/ijau.12076
DO - 10.1111/ijau.12076
M3 - Article
SN - 1090-6738
VL - 21
SP - 11
EP - 23
JO - International Journal of Auditing
JF - International Journal of Auditing
IS - 1
ER -