The UK’s accountancy giants should be broken-up in the wake of Carillion’s collapse and smaller firms encouraged into the auditing market.<\/p>\n
MPs on the Business, Energy and Industrial Strategy Committee want to see audit and non-audit businesses separated at Deloitte, EY, KPMG and PwC.<\/p>\n
The big four audit 97% of major public companies.<\/p>\n
Committee chair Rachel Reeves said: “The \u2018Big Four\u2019s\u2019 dominance has fostered a precarious market which shuts out challengers and delivers audits which investors and the public cannot rely on.”<\/p>\n
“For the big firms, audits seem too often to be the route to milking the cash-cow of consultancy business.<\/p>\n
“The client relationship, and the conflicts of interest which abound, undermine the professional scepticism needed to deliver reliable, high-quality audits.<\/p>\n
“Splitting audit from non-audit business would be a big step to boosting the culture of challenge needed to deliver high-quality audits.”<\/p>\n
The report highlights the reporting and audit failures that brought down Carillion including “the imprudent payment of dividends out of optimistically booked, and, in hindsight, unrealised, profits.”<\/p>\n
Reeve said: “We must not wait for the next corporate collapse. Government and regulators need to get on and legislate to deliver these reforms and ensure that audits deliver what businesses, investors, pension-holders and the public expect.”<\/p>\n
from Construction Enquirer https:\/\/ift.tt\/2uGKpLA<\/p>\n","protected":false},"excerpt":{"rendered":"
The UK’s accountancy giants should be broken-up in the wake of Carillion’s collapse and smaller firms encouraged into the auditing market. MPs on the Business, Energy and Industrial Strategy Committee want to see audit and non-audit businesses separated at Deloitte, EY, KPMG and PwC. The big four audit 97% of major public companies. Committee chair […]<\/p>\n","protected":false},"author":1,"featured_media":150,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[9],"class_list":["post-4580","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-construction-enquirer"],"_links":{"self":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/4580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/comments?post=4580"}],"version-history":[{"count":1,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/4580\/revisions"}],"predecessor-version":[{"id":4581,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/4580\/revisions\/4581"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/media\/153"}],"wp:attachment":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/media?parent=4580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/categories?post=4580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/tags?post=4580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}