Q381.pdf

The Business, Energy and Industrial Strategy Committee held an oral evidence session on the future of audit, with witnesses from Grant Thornton, BDO, Association of Practising Accountants, and Mazars. The committee chair, Rachel Reeves, asked questions about the barriers to entry for challenger firms in picking up FTSE 350 work and whether the proposed remedies by the CMA would reduce these barriers. The witnesses discussed their capabilities and resources to take on this work, with David Dunckley from Grant Thornton stating that they have the capability but not the capacity, and Scott Knight from BDO saying that they already do some FTSE 350 work. The committee also explored the issue of professional scepticism and challenge, with Scott Knight emphasizing the importance of resilience and toughness in following through on identified issues. Jac Berry from Mazars noted that they are still bidding for FTSE 350 work and are asked to provide evidence of their ability to challenge during audit tenders. The witnesses also discussed the balance between professional scepticism and cultural fit when bidding for work, with Scott Knight suggesting that audit committees should prioritize robustness, tenacity, and the ability to follow through.