Britain’s ‘Big Four’ accounting firms face major overhaul
The plans mark the most ambitious attempt yet to reform the UK's accounting industry
London — Britain’s “Big Four” accounting firms face a radical shake-up from proposals to reduce their hold on the market for auditing companies’ books, which would also force them to separate their audit and advisory businesses. The plans, published on Tuesday in two government-requested reports, mark the most ambitious attempt yet to reform the accounting industry, dominated by EY, Deloitte, KPMG and PwC, which check the accounts of 341 of the top 350 listed companies in Britain. Politicians have criticised a “cosy” audit sector and its “timid” regulator of failing to foresee the collapse of retailer BHS and construction company Carillion. In a report commissioned by the business ministry, John Kingman, chair of insurer Legal & General, said the current regulator — the Financial Reporting Council (FRC) — should be replaced by a new watchdog with new management, stronger powers and a competition remit. It would be funded by a mandatory levy on accounting firms. “We need to build a n...
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