Member Article

Competition proposals are an opportunity for regional firms

Proposals to enforce regular tendering of audit work for major UK-listed companies can help regional accountancy firms to grow, according to Waltons Clark Whitehill.

Welcoming the report by the Competition Commission, management at the Teesside-based firm of chartered accountants and business advisers said the move would create opportunity in the market.

The Commission’s proposal is seen as a way of loosening the grip of the ‘big four’ - KPMG, Deloitte, PWC and Ernst & Young - by mandating that companies allow other suitably experienced accountancy firms to bid for their audit work every five years.

Paul Harrison, Partner at Waltons Clark Whitehill, said: “These proposals would give firms in the North East the opportunity to put themselves forward and make a strong case for work which might otherwise be tied up by the big four. Such opportunities would allow larger regional firms like Waltons Clark Whitehill to get in front of these listed companies and build relationships, which is something we thrive upon.

“It is reported that 90% of the UK’s largest stock market-listed companies are audited by the big four, but that is not to say that the experts within smaller accountancy firms are not as capable of working with these firms and doing the job well. Indeed there are many firms, such as ourselves, who are nationally and internationally connected, that can offer a true cost effective alternative to the traditional “big four”.

“The proposals don’t go as far as insisting upon the company changing the firm they use, but that is down to other accountants taking their opportunities to make their case strongly.”

This was posted in Bdaily's Members' News section by Recognition PR Business Team .