The Big 4 accounting firms continue to dominate the FTSE 350 audit market, earning 98% of all the audit fees says the Financial Reporting Council.
This results in limited choices for businesses and ongoing concerns about resilience.
FRC said it now aims to conduct in-depth investigations that can generate proposals to improve the way the market functions.
The FRC’s Mark Babington said: “A resilient, competitive audit marker focused on quality is essential to rebuild trust and confidence in corporate Britain.
“While there have been some positive steps, 98% market share for the Big 4 leaves little room for challengers to emerge while maintaining high standards of audit quality. The FRC will continue to collaborate across the whole system to develop the conditions for an audit market that balances quality, innovation, resilience, and true choice.”
