BEIS consultation on audit and corporate governance: our response

David Herbinet, Mazars Head of Audit, commented:

“We are grateful for the opportunity to play our part in transforming audit and renewing the broader corporate governance system in order to serve the public interest; strengthening resilience within our capital markets. Our analysis and modelling shows that, in the absence of joint audit, managed shared audit represents the only way to achieve meaningful reform of the audit market within a reasonable period of time, while setting perfectly achievable growth targets for the audit practices of challenger firms. We believe strongly in the proposed creation of an improvement-focused regulator, adopting a proportionate approach and cognisant of promoting the right balance between entrepreneurship and accountability, and avoiding undue regulatory pressure on our companies.”

Please find a summary of our response, our full response, and a comparison of joint audit, managed shared audit, and market cap below