Research into firm entry, growth and exit in the Public Interest Entity (PIE) audit market and non-PIE audit market

Tender description

THIS IS A CONTRACT AWARD NOTICE. THIS OPPORTUNITY IS CLOSED. The Financial Reporting Council (FRC) regulates auditors, accountants and actuaries and sets the UK's Corporate Governance and Stewardship Codes. We seek to promote transparency and integrity in business; our work is aimed at investors and others who rely on company accounts, audit, and high-quality risk management. A high-quality audit provides investors and other stakeholders with a high level of assurance that the financial statements of an entity give a true and fair view of its performance and financial position, and provide a reliable and trustworthy basis for taking decisions. All companies in the UK are required, under the Companies Act, to have their annual accounts audited externally, unless exempt. There are many firms in the UK that can carry out these statutory audits. The Financial Reporting Council (FRC) is commissioning research to enhance understanding of firm entry, growth and exit in the PIE and non-PIE audit markets. The research should generate insights that will help inform the FRC's future work and regulatory approaches and support the FRC's objective to create a more resilient audit market through greater competition and choice. The project will be comprised of two parts: A. PIE audit market B. Non-PIE audit market The purpose of the project is to support the FRC in its objective to 'create a more resilient audit market through greater competition and choice'. The research will generate insights into the PIE and non-PIE audit markets to help inform the FRC's future work and regulatory approaches. The overall objective of the research is to enhance understanding of firm entry, growth and exit in the PIE and non-PIE audit markets. • The objective of Part A is to better understand the appetite of audit and non-audit firms to enter, or expand their presence in, the PIE audit market. This will include understanding any barriers they face in achieving this, and what action(s) may lower these barriers. • The objective of Part B is to better understand the economics of audit firms in the non-PIE audit market, as well as what has driven the decline in the number of such firms over the last five years. The research in Part B should also produce an analysis of the implications of the declining number of firms, whether positive or negative, for choice, competition and audit quality.