EY to centralise power in Europe in break from typical Big Four model June 1, 2021 EY will centralise power in a new European executive team, in a move that breaks away from the typical model employed by Big Four firms. The European executive team will pool resources from across the region, the Financial Times first reported. Big Four firms typically operate a federal model, with profits and resources largely kept [...]
‘Risky’ FTSE firms could be shunned by worried auditors fearing backlash May 29, 2021 There are worries that the crushing weight of public criticism combined with record-breaking fines could see perceived ‘risky’ FTSE companies shunned by auditors. Following large-scale collapses like Carillion and Patisserie Valerie, the audit sector has faced harsh criticism, having come under both the media and government’s spotlight for failing to do their jobs properly. According [...]
Deutshe Bank mulls ditching EY as auditor following Wirecard scandal May 28, 2021 Deutshe Bank is inviting firms to compete for its 2020 audit just two years after hiring EY to replace KPMG, in a move that could see EY ditched in favour of another company. The chair of Germany’s biggest lender Paul Achleitner told shareholders that the company wants “to keep all its options open” when it [...]
Promote auditors who challenge clients says think tank May 28, 2021 Auditors who challenge clients should be celebrated and promoted, according to a new report from think tank IPPR, in order to better serve society as a whole. A complete culture change is needed within the UK’s audit industry to ensure that public trust is fully restored, the think tank said in its latest report. Without [...]
Audit watchdog admits it was not up to the job amid major company collapse May 27, 2021 The boss of the Financial Reporting Council (FRC) has admitted the audit regulator was asleep at the wheel following large scale business collapses that shook confidence in the sector. Sir Jon Thompson, chief executive of the FRC, said he agreed with criticism of the regulator following the collapse of Carillion and Patisserie Valerie. Speaking to [...]
Has lockdown triggered a City brain-drain? May 20, 2021 The explosion in home-working due to lockdown is shifting the focus away from a London-centric view of careers, with regional firms benefiting from a growing desire to shun the commute. Lockdown is prompting a shift away from City jobs to opportunities at smaller, regional practices with talent-hungry boutique firms stretching to match Square Mile-level salary [...]
ABI director general to take up partner role at KPMG May 19, 2021 Huw Evans, director general at the Association of British Insurers (ABI), will join KPMG as a partner next January in the Big Four firm’s insurance and long-term savings division. Evans had been director general at the ABI for more than six years, during which he represented the insurance industry through Brexit, Solvency II implementation, pension [...]
Carillion liquidators secure funding to take KPMG to court for audit failures May 19, 2021 Carillion’s liquidators have secured a £250m funding deal with a litigation funder to take KPMG to court for audit failures. Litigation Capital Management (LCM) will fund a claim against the Big Four firm in the Commercial Court of the High Court. Carillion’s liquidators are taking KPMG to court for perceived audit failures, resulting in losses [...]
Shell’s shareholders vote for its climate strategy, despite growing support for its activist rival May 18, 2021 Energy giant Shell saw its shareholders overwhelmingly support the company’s energy transition strategy today, despite growing backing for a second climate resolution filed by an activist group. An advisory vote on its climate strategy, which meant it was a non-binding resolution, won 88.74 per cent shareholder support at its annual general meeting (AGM) today. The [...]
Ministers to start searching for new audit watchdog chair May 7, 2021 The Department for Business, Energy and Industrial Strategy (BEIS) will shortly kick off the search for the new chair of the Financial Reporting Council (FRC). BEIS will advertise for the role in the coming weeks, Sky News first reported. The FRC’s current interim chair Keith Skeoch has reportedly had his contract extended in recent weeks [...]