KPMG forced to clean up its act as Big Four accountancy firm halts working as auditor for top British companies
Accountants KPMG will stop doing consulting work for top British companies where it is the auditor to avoid conflicts of interest following a string of scandals.
It audits 90 FTSE 350 companies and is the first of the ‘Big Four’ – Deloitte, KPMG, E&Y and PwC – to take this step.
Bill Michael, KPMG chairman, said in a note to partners: ‘To remove even the perception of a possible conflict, we are currently working towards discontinuing the provision of non-audit services, other than those closely related to the audit.’
KPMG is one of the ‘Big Four’ accountancy firms in the United Kingdom – along Deloitte, Ernst & Young (E&Y) and PricewaterhouseCoopers (PwC)
It comes amid intense scrutiny of the industry following high-profile company collapses, such as at construction giant Carillion and former retailer BHS, which have damaged public trust in the audit process.
Business Secretary Greg Clark has raised the prospect of breaking up the industry.
And the Competition and Markets Authority watchdog will look into ways to increase choice and strengthen competition.