Summary of Deloitte’s response to the Competition Commission questionnaire
On 20 February 2012 Deloitte submitted a voluminous response to the Market and Financial Questionnaire that the Competition Commission (CC) sent to Deloitte and other audit firms earlier in the year. Recognising the complexity of our response, we voluntarily developed a summary paper that set out the key themes and also submitted this to the CC to assist the Panel in its consideration of our response. Neither the questionnaire nor our response are public documents, but this paper is the summary document we submitted, adapted to exclude confidential information.
This paper sets out our observations on the following six issues:
- Growth and competition in the market for statutory audit services to FTSE 350 companies, based on Deloitte’s experience;
- The delivery of audit quality;
- Choice of auditor for large companies;
- The provision of non-audit services;
- The relationship between audit fees and concentration/market shares in the large company audit market; and
- The profitability of Deloitte’s core audit and audit related services business (together “Audit Services”).