See the BBC news item story here about an OFT review of the Big-4: See here.
My view? External audit is now largely out-dated. The binary nature of the opinion renders it useless and instead of focussing on backward looking KPI’s (aka “the accounts” or “financial report”) it is time we moved on to a more meaningful method of providing assurance to external stakeholders.
Of course this is not just a UK problem, and there probably is not a good way yet of dealing with this on an international basis.