Barely a year ago, in April 2019, the UK’s Competition and Markets Authority (CMA) recommended a shake-up of the British audit market, citing the need for legislation to address what the CMA described as serious competition problems.
“More choice and competition for the audits of big businesses can and should drive up their quality, but the barriers to entry for ‘challenger’ audit firms are currently large,” asserted the watchdog at the time.
“The CMA recommends mandatory joint audit, to increase the capacity of challengers, to increase choice in the market and thereby drive up audit quality. Challenger firms should work alongside the Big Four in these joint audits and should be jointly liable for the results.”
Now, nine months later, a mid-tier auditor has reportedly been appointed by major insurer AIG – the global operations of which have long been audited by Big Four firm PwC – for its British books.
Citing people familiar with the matter, Financial Times said Paris-headquartered Mazars will serve as AIG’s auditor in the UK starting next year, with PwC not losing its group auditor remit. Mazars’ appointment is reportedly worth £1 million.
Prior to the supposed AIG pick, Mazars had been tapped by investment bank Goldman Sachs for the audit of its European businesses.
