Stephen Hornsby - 30 October 2018
In the 'Big Four' accountancy investigations, can independent regulators bite the hand on which central government feeds?
The ‘Big Four’ accountants - an oligopoly if ever there was one as Bill Michael of KPMG has freely admitted - are charged with lowballing statutory audit services to major companies in the UK in order to gain much more lucrative advisory work. As a result (it is said) the audit work is done poorly and this has contributed to the series of scandals such as Carillion and BHS. What is more, it is also said that the 'Big Four' have little incentive to give the sometimes necessary bad news to their client (and therefore the market) for fear of losing the tasty advisory work for which the statutory audit has provided such an unappetising entrée... See more
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