Finance Monthly - October 2021

28 Finance Monthly. Bank i ng & F i nanc i a l Se r v i ce s It seems, therefore, that while these shared audits have been proposed with the best of intentions for a highly anticipated diversification of the sector, improving standards in the process, there are some growing pains left to work out. Indeed, some of the smaller or ‘challenger’ audit firms have expressed the view that the shared audit requirement falls some distance short of the Competition and Market Authority’s (CMA) envisaged joint audit approach. The proposed time period (5-9 years) over which the progress of market capture by these challenger firms would be monitored may also potentially prove to be far too long, with the approach appearing to be incremental in nature as opposed to more immediately transformative. However, the initial response of many ‘challenger’ audit firms to proposals for a diversification and transformation of the sector have been encouraging. Firms are keen to see diversification, providing for a much-needed revamp and improvement of standards following scandals surrounding Pâtisserie Valerie, Carillion, Thomas Cook and more. “The public must perceive audits completed as independent at all times in order to avoid their losing faith in the market, making these diversification processes more essential than ever.”