Auditors in tie-up talks

TWO accounting firms are gearing up to challenge the Big Four auditors with a merger they expect to complete in the spring.

BDO and Moore Stephens, the sixth and ninth-largest firms respectively, confirmed they are in the late stages of talks and that all partners had voted in favour of the tie-up. The new business – which will adopt the BDO brand – will leapfrog over Grant Thornton to become the fifthlargest UK auditor.

The Big Four auditing companies – Deloitte, PwC, EY and KPMG – have come under intense political scrutiny this year since the collapse of contractor Carillion in January.