Digital risk
How to better manage digital risk
Cyber threats continue to soar. So what’s the solution? Our advice is to build a wider ‘digital risk’ function which integrates data privacy and cyber security. But where should you start?
IFRS
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Are you ready for IFRS 16? This series of insights will help you prepare.
Tax
Say goodbye to the arm’s length principle
After a slow and tentative start, the OECD’s push for a solution on how to allocate and tax the profits from digital business is gathering momentum.
Technology, media & telecommunications Home
International Business Report (IBR)
TMT outlook: Can tech spend buoyancy keep the industry airborne?
Uncertainty is mounting for technology, media and telecommunications (TMT) businesses amidst a turbulent economic and political backdrop, according to the latest research from Grant Thornton. But with businesses in other industries increasingly looking to new technologies as the path to transformation, this is also a time of opportunity. So how can the TMT industry ride out the turbulence and thrive?
EU business survey reveals majority support for a more diverse audit market
A clear majority (65%) of businesses across the EU believe there needs to be a more diverse audit market, and 51% support mandatory rotation of audit firms to address the risks of 'over familiarity' between the auditor and the audited company, while 21% do not.
We welcome any further research and discussions aimed at providing more feedback on the need for change in the structure of the EU audit market, said Grant Thornton International CEO Edward Nusbaum. EU businesses are saying that auditor concentration is an issue, but at the same time we need to point out that auditor rotation unto itself is not the answer, but only one possible part of the solution.
Other key findings:
Support for a more diverse audit market was strongest in Greece (84% vs. 12%), Ireland (80% vs. 20%), Italy (80% vs. 6%), Poland (78% vs. 20%) France (77% vs. 9%) and the United Kingdom (74% vs. 25%). Globally, 69% support and 22% do not.
• Support for mandatory auditor rotation was strongest in Spain (75% vs. 12%), Ireland (84% vs. 10%), Greece (68% vs. 12%), France (68% vs. 16%) and Poland (64% vs. 14%).
A majority (54%) of EU businesses think it would help market confidence if every large public company was audited by two firms rather than one, with 40% disagreeing. Support was strongest in Greece (82% vs. 16%), Poland (82% vs. 16%), Spain (73% vs. 24%), France (72% vs. 21%), and Italy (66% vs. 18%).
The survey was conducted by Experian in August and September 2012 as part of the Grant Thornton International Business Report, a quarterly global business survey of 3,000 public and private businesses of which 951 were from the EU.
