UK: Force auditor changes every 15 years, say investment firms

The UK’s Competition Commission received a letter recently signed by several of Britain’s largest pension and investment firms asking the regulator to force auditor switch-ups every 15 years to ensure an end to auditor complacency within the accountancy industry. The Commission at one point has suggested a requirement for companies to switch auditors every 14 years and introduce a tender for their audit work every five to seven years. Since, however, the regulator has decided to allow companies to have their shareholders vote on reappointing auditors; the firms that sent the letter the Commission argue that a vote is not enough to ensure auditor shake-ups. Among those that signed the letter are USS Investment Management and Royal London Asset Management; billions of British pounds worth of assets are controls by those who sent the letter. The Commission announced it will release details of plans to resolve the matter in July.

Full Content: Yahoo News

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