Deloitte’s audit pricing analysis for the Competition Commission
Deloitte’s appraisal of the Oxera/OFT analyses involved a thorough assessment of the data used, the explanatory factors included in the model, and the technical robustness of the model. We identified significant concerns and have sought to address these using a revised model.
Our revised model shows that there is no demonstrable causal relationship between concentration and audit fees. Audit fees are instead shown to be driven by other factors including changes in complexity resulting from changes in the auditees’ circumstances, changes in regulation, and by the risks to which the auditor is exposed through auditing those companies.