Mr. Kevin Prendergast:

The Deputy has made the point. First, there are more than 1,000 auditors in the country. There are price pressures in the market itself that drive that down. IAASA would like to see competition on quality rather than price. This should not just be a sort of product that entities purchase. It should provide trust and a degree of security, not just for the people who invested in a company, but also for the directors of a company that their internal controls work effectively and that they can place trust in the financial statements and the systems that have created those financial statements. For us, it is as much about providing a quality service from the profession as it is about the price per se.

As Ms Kennedy pointed out, it is not an area we regulate, but we hear comments both ways. We hear some comments that audit is overpriced, and other comments that it is very difficult as a small and medium practitioner to be able to provide a quality service in compliance with law and regulation at some of the price points that are out there. When you hear both sides, that is perhaps evidence that the market is working, but I do not deny that it can be a tough market for small and medium practitioners in particular.