RSS feedsAccounting's watchdog has told the Big Four they need to show they can manage risks or face the potential of outside regulation.
The Financial Reporting Council today released a discussion paper following last month's publication of the Oxera report into audit competition. The paper said the loss of a Big Four firm would cause uncertainty in the capital markets and posed the risk of market disruption.
In the paper, the FRC said that it would have to look into whether market-led action or outside regulation would mitigate the risks of a Big Four firm collapse.
