COUNTERS IN PROBE

Watchdogs have launched an investigation into the accountancy sector after a series of scandals.

The Competition and Markets Authority will focus on auditing – how accountants double check company books.

The probe follows the collapse of construction giant Carillion, when the firm was given a clean bill of health before going to the wall.

As part of the review, the CMA will investigate whether the sector is “competitive and resilient enough to maintain high quality standards”.

The role of the dominant Big Four accountancy giants – Deloitte, EY, KPMG and PwC – is expected to come under intense scrutiny amid calls for them to be broken up.

The Big Four were accused by MPs earlier this year of prioritising their own profits after pocketing around £71.6million in Carillion-related work since 2008.

CMA chairman Andrew Tyrie said: “If the many critics of the audit process are right, it is not just the companies which buy audits that lose out – it is the millions of people dependent on savings, pension funds and other investments in those companies whose audits may be defective.”