Regulators Propose Sweeping Changes to U.K. Audit Industry

The U.K. government has sought to improve the reputation of the nation’s audit and accounting sector. Photo: Alberto Pezzali/NurPhoto/Zuma Press By Nina Trentmann April 17, 2019 7:01 p.m. ET

Newsletter Sign-up The CMA recommended an operational split of the Big Four’s audit work in the U.K., a change that would require the audit firm and the consulting business to have separate chief executives and boards, as well as separate financial statements. The change also would end profit-sharing between the companies’ audit and consultancy businesses, as well as ending promotions and bonuses that are based on the quality of audits.

The U.K. government has 90 days to respond to the CMA’s recommendations. “Legislation is needed to address both the vulnerability of the industry to the loss of one of the Big Four, and the current inadequate choice and competition,” the CMA said in a statement.Andrew Tyrie, chairman of the U.K.’s Competition and Markets Authority.

KPMG welcomed “many aspects of the CMA’s recommendation to introduce increased separation,” but said its auditors still needed access to the firm’s wider resources, including talent and technology.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

UK watchdog orders ringfencing of Big Four audit businessBritain's 'Big Four' accounting firms must ringfence auditing fro... RT : UK watchdog orders ringfencing of Big Four audit business
Source: Reuters - 🏆 2. / 97 Read more »

'Climate before cash': How young Norwegians are driving change in the country’s oil industryThe country’s oil and gas sector employs 170,000 people and is the top moneymaker, producing 17 percent of Norway’s GDP. So I'm sure those 'young people' will go without money in order to 'save the planet.' those privileges they enjoy and welfare they feel entitled to wouldn't exist without Oil and Gas. Can someone clear that up for those Dumbo's, it will varnish without a sign if the government were to stop production. Let’s do a follow-up article in a few years NBC, or how about in 12 years before the world ends and see how this plan goes for them.
Source: NBCNews - 🏆 10. / 86 Read more »

Citigroup to refund retail customers for investment losses: Australian regulatorCitigroup will refund more than A$3 million ($2.2 million) to retail customers i... That’s nice. With stolen Venezuelan gold? “I sincerely believe, with you, that banking establishments are more dangerous than standing armies.” —Thomas Jefferson, President of the United States (1801–1809) and principal author of the United States Declaration of Independence (1776)
Source: Reuters - 🏆 2. / 97 Read more »