10 February 2011
Professor Michael Power spoke recently to an audience of over 600 in Brussels at the European Commission conference on 'Financial Reporting and Auditing: A time for change? ' The conference was a follow up to the Commission's 2010 Green Paper on Audit Policy. The Commissioner for Internal Market and Services, Michel Barnier, opened the session on auditing and made it clear that change was essential. Professor Power addressed the question of whether the large audit firms are too big to fail and argued that issues of audit market concentration are a symptom of a deeper problem with the audit product. Rather than break up the firms, he suggested that current practice should be redesigned in order to create a series of more valuable assurance services for which clearer markets would exist.
For further information, please click here