IFAC Submission on the UK Competition and Markets Authority’s Audit Market Study

IFAC’s submission on the UK Competition and Markets Authority’s (CMA) Statutory audit market study provides an international perspective, including contextual observations regarding audit quality and initial views on some of the remedies under consideration. IFAC strongly concurs with the CMA that regulation and competition should work hand in hand to deliver audit quality that serves shareholders and investors and trustworthy financial information that provides the confidence necessary for the proper functioning of the market economy. In that context, IFAC recognizes the critical importance of the behavior of the firms, in particular with respect to audit independence. IFAC recommends using the International Auditing and Assurance Standards Board’s Framework for Audit Quality (the Framework) as a comprehensive approach to defining audit quality.