The big four accountancy firms check 90% of the UK's largest stock-market listed companies
Major UK-listed companies must allow accountants to bid for audit work every five years, the Competition Commission has proposed.
It said that putting the work out to tender regularly would help to break up the dominance of the big four accountancy firms.
The commission stopped short of forcing companies to change auditors.
KPMG, Deloitte, PwC and Ernst & Young audit 90% of the UK's largest stock-market listed companies.
The regulator is concerned that they are too dominant and do not always meet shareholders' needs.
"More frequent tendering will ensure that companies make regular and well informed assessments of whether their incumbent auditor is competitive and will open up more opportunities for other firms to compete," said Laura Carstensen, chairman of the Audit Mark Investigation Group.
"A more dynamic, contestable market will reduce the dangers that come with overfamiliarity and long, unchallenged tenures," she added.
"Whilst there are costs in going out to tender, we think that they are outweighed by the benefits of a more competitive market in which shareholders can have increased trust."
Source: BBC News - Business http://www.bbc.co.uk/news/business-23401930#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
