Proposals by the U.K. government’s promoter of business competition to overhaul auditing have found more criticism than support among business, the accounting industry, and academics.

“There is nothing here that will make any difference to audit quality,” Prem Sikka, the Sheffield University accounting professor who chaired the Labour Party’s review of the audit market, said. “Look at any of the recent auditing scandals and they would not have been caught by these measures.”

The Competition and Markets Authority (CMA)...