Big Four firm EY expects a flood of FTSE audit tenders this year ahead of audit regulatory changes
According to the Big Four firm, the recent consultation on EU audit market reform from the Financial Reporting Council (FRC) is the “clearest indication” that the rules of engagement between audit committees, auditors and professional service providers will be re-written. The firm said boardroom behaviour has been moving ahead of the regulatory changes, which are expected to take effect for financial periods beginning on or after 17 July 2016. As a result, companies have already started issuing audit tender and rotating their professional services providers this year. EY expects at least 24 FTSE 100 audit tenders this year, which will result in a change of auditor.