PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The so-called ‘big four' will need to set up separate management, accounts and remuneration; appoint a separate chief executive and board; separate financial statements; and, end profit-sharing between audit and consultancy. The Competition and Markets Authority (CMA) has today (18 April) recommended a suite of measures to boost the quality of audits and remove the potential of being "influenced" by the big four's larger consultancy businesses, which also conduct pension consultancy work. Recommendations In its final report of its statutory audit services market study, the CMA parti...
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