While the Big Four audit firms (Deloitte, EY, KPMG, PwC) continue to dominate the market, the report shows that non-Big Four firms continued to increase their share of PIE audit engagements to 40% in 2024, up from 22% at the start of the decade.

In addition to outlining the latest developments relating to audit market dynamics and competition, the report outlines recent progress across several key areas where the FRC is proportionately facilitating a well-functioning audit market to support competition and growth: building capacity for smaller firms, improving access to audit services and embedding proportionality to reduce burdens.

Key initiatives include the Future of Audit Supervision Strategy, which is evolving how the FRC supervises firms to enable market resilience, the System of Quality Management Scalebox Programme supporting smaller audit firms to build their capabilities, and the SME market study identifying practical ways to improve audit access for UK SMEs – which represent 99% of the private sector.

Richard Moriarty, FRC CEO, said: “A well-functioning audit market is essential for maintaining confidence in UK plc and enabling businesses to attract the capital they need to grow.

“While we’ve seen encouraging progress, with non-Big Four firms now conducting 40% of PIE audits, achieving a resilient audit market requires collective action from all stakeholders – audit firms, companies, and regulators alike.

“The FRC is committed to working collaboratively to embed proportionality, reduce unnecessary burdens, and build capacity across the whole market.”