UK antitrust agency the Competition and Markets Authority is contemplating separating the consultancy and auditing arms of the big four accountancy networks. After a series of high-profile company failures, such as Deloitte, the agency is investigating possible solutions to conflicts of interest arising in Carillion, PWC, EY and KPMG, who accounted for 97% of FTSE 350 audits in 2016-17, and could cap the firms' market share. Last year, the big four made £329m ($424m) from additional consultancy services from big clients which they audit, bringing up the possibility of going easy on audits for the prospect of selling lucrative extras.
UK antitrust agency the Competition and Markets Authority is contemplating separating the consultancy and auditing arms of the big four accountancy networks. After a series of high-profile company failures, such as Carillion, the agency is investigating possible solutions to conflicts of interest arising in Deloitte, PWC, EY and KPMG, who accounted for 97% of FTSE 350 audits in 2016-17, and could cap the firms' market share. Last year, the big four made £329m ($424m) from additional consultancy services from big clients which they audit, bringing up the possibility of going easy on audits for the prospect of selling lucrative extras.