While the Big 4 audit firms continue to dominate the market, the non-Big 4 firms continue to eat away at their share of the Public Interest Entity audit engagements.
New research by the Financial Reporting Council (FRC) shows non-Big 4 firms’ share of PIE audit engagements rose to 40% in 2024, up from 22% at the start of the decade.
However, the Big 4 firms still dominate the market in terms of share of audit fees. In 2024 they earned 98% of FTSE 350 audit fees (same as 2023), and 91% of all PIE audit fees (90% in 2023).
Richard Moriarty, FRC CEO, said: “A well-functioning audit market is essential for maintaining confidence in UK plc and enabling businesses to attract the capital they need to grow. While we’ve seen encouraging progress, with non-Big Four firms now conducting 40% of PIE audits, achieving a resilient audit market requires collective action from all stakeholders – audit firms, companies, and regulators alike. The FRC is committed to working collaboratively to embed proportionality, reduce unnecessary burdens, and build capacity across the whole market.”
