Browsing Management and Law by Author "Ghattas, N."
Audit tendering in the UK: a review of stakeholders' viewsAllam, A.; Ghattas, N.; Kotb, A.; Eldaly, Mohamed K.A. (2016)Despite the importance of the ongoing debate on audit tendering and its possible implications for the audit profession including audit market structure, audit quality, and auditor independence, there is an apparent lack of research into this area. Using content analysis, this study reports the results of an examination of the comment letters sent to the UK Financial Reporting Council (FRC) in response to its consultation document on the 2012 revisions of the UK Corporate Governance Code. The results indicate a general support for the FRC’s proposals with a number of key concerns related to audit quality, audit cost and auditor independence. There is also clear conflict of interests among some groups such as audit firms and companies on one side and institutional investors on the other side. There is evidence of conflict of interest between Big 4 and non-Big 4 audit firms. The findings could influence future revisions of the Code with regard to tendering and enhance policy makers’ understanding of the position taken by each group of stakeholder.