MPs are demanding the competition watchdog break up the ‘big four’ accountancy firms to improve confidence in top company audits following the failures of Carillion and BHS.
A report by the Business, Energy and Industrial Strategy (BEIS) Committee argues for the “full structural break-up” of KPMG, Deloitte, PwC, and EY into audit and separate consultancy businesses.
The MPs said such a move would be more effective in tackling conflicts of interest and providing the “professional scepticism” needed to deliver high-quality audits.
The Competition and Markets Authority (CMA) is to shortly deliver its final report on the issue.
Its initial proposals included only an operational split between audit and advisory work and cross-checks on audit quality to improve standards and boost competition.