11/9/2018, 9:52 AM (Source: TeleTrader)
more TeleTrader news

Deloitte to stop offering consultancy services to audit clients

The world's largest professional services network Deloitte will stop offering consulting work to audit clients, according to a statement submitted on Friday to United Kingdom's Competition and Markets Authority (CMA). The announcement comes a day after KPMG, also a part of the "Big Four" major accounting organizations, said it would limit operations to auditing for clients included in the FTSE 350 stock market index.

"We recognise that in the UK there are still concerns around auditor independence. These concerns are not generally held elsewhere around the world, but given the UK environment we support a ban on all non-audit work by a firm to those FTSE 350 companies and large public interest entity private companies which it audits," Deloitte stated.

The move comes amid the regulators' scrutiny into the conduct of major firms in the sector in the runup to the collapse of construction contractor Carillion at the beginning of the year. The CMA has launched an investigation into possible conflicts of interest and dominance of the big four accounting entities. The Financial Reporting Council has also been conducting a review and last month slammed KPMG for deterioration in the quality of the audits, highlighting the case among the probes into Deloitte, Ernst and Young and PricewaterhouseCoopers.

Breaking the News / FH