Ed Miliband comments on Government's audit reform consultation

Ed Miliband MP, Labour’s Shadow Business Secretary, commenting on the Government's audit reform consultation, said:

"There are real questions about whether this package is sufficient to reform the broken audit market.

"There are some proposals we welcome, including tougher penalties for individual company directors where there are serious failings.

"However it is regrettable that on the crucial issue of competition in the audit sector, the package waters down some of the independent recommendations for reform, including on mandatory joint audits between the big four and challenger firms.

"The option of a structural split between the audit and non-audit parts of business practises must be kept on the table."

Ends

Notes to editors

• The CMA rejected the weaker 'shared audit' option, on the grounds that “Shared audit would result in the smaller firm being very clearly subsidiary to the bigger; it would be less effective in achieving resilience and choice in the market.”