KPMG to stop ex­tra ser­vices in bid to counter crit­i­cism

The Daily Telegraph - Business - - Business - By Wil Crisp

BIG FOUR ac­count­ing firm KPMG is set to stop pro­vid­ing ex­tra ser­vices to FTSE 350 au­dit clients in an ef­fort to counter crit­i­cism that con­flicts of in­ter­est have com­pro­mised stan­dards.

Chair­man Bill Michael has out­lined a plan to part­ners to phase out non-au­dit ser­vices deemed not to be es­sen­tial.

The move comes amid in­creas­ing crit­i­cism of the Big Four ac­coun­tancy firms: KPMG, PwC, EY and Deloitte.

The au­di­tors, which dom­i­nate the UK’s £12.6bn ac­count­ing mar­ket, have come un­der close scru­tiny af­ter sev­eral high-pro­file com­pa­nies re­vealed se­vere fi­nan­cial is­sues de­spite hav­ing their ac­counts signed off.

In a memo to KPMG’s 625 UK part­ners, first re­ported by Sky News, Mr Michael said: “To re­move even the per­cep­tion of a pos­si­ble con­flict, we are cur­rently work­ing to­wards dis­con­tin­u­ing the pro­vi­sion of non-au­dit ser­vices to the FTSE 350 com­pa­nies we au­dit.”

Greg Clark, the Busi­ness Sec­re­tary, has asked the CMA to carry out a re­view that fo­cuses on com­pe­ti­tion in the sec­tor.

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