10/9/2018, 1:29 PM (Source: TeleTrader)
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UK probes auditors in wake of Carillion collapse

Britain's Competition and Markets Authority said on Tuesday that it would investigate alleged conflicts of interest in the operations of auditing firms. The process focuses on determining whether the sector is "competitive and resilient" in line with "high quality standards," according to the update. The move follows the abrupt demise of Carillion, which employed thousands of people in facilities management and construction, and scandals with GE and Steinhoff.

One of the priorities for CMA is to measure competitiveness in the light of the dominance of Deloitte, KPMG, Ernst and Young and PricewaterhouseCoopers, the panel added. The so-called big four will be looked at to determine whether they are too big to fail and to find out if they avoid producing "challenging performance reviews" for clients, the statement said.

The investigation is planned to be finished by late December, supervisors revealed. The Financial Reporting Council yesterday announced its own review. Almost 2,800 workers were laid off from Carillion by the end of liquidation.

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