KPMG to stop extra services in bid to counter criticism
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.