MPs launch inquiry into future of ‘broken’ audit sector November 12, 2018 A powerful parliamentary committee will launch an inquiry into the “broken” audit market today, aimed at ensuring an ongoing competition probe ends the “overwhelming market domination” of the Big Four. Labour MP Rachel Reeves will announce the inquiry – by the Business, Energy and Industrial Strategy (BEIS) Select Committee which she chairs – during a [...]
Deloitte calls for audit market cap and ban on selling extra services to audit clients November 8, 2018 Two of the world’s biggest accountancy firms have backed a ban on UK auditors selling extra services to their audit clients, setting the stage for a huge shift in the embattled sector. Deloitte and KPMG – two members of audit’s Big Four – have backed the move, which would potentially put hundreds of millions in fee income [...]
KPMG will halt non-audit work on FTSE 350 clients in wake of Carillion November 8, 2018 KPMG is set to become the first of the so-called Big Four to cease all non-audit work for FTSE 350 clients in the wake of Carillion. The auditor will stop providing all but some essential non-audit services for the 90 FTSE 350 customers whose accounts it audits, it has told 625 UK partners in a [...]
German budget supermarket chain Lidl boosts wages for UK employees November 6, 2018 German budget supermarket Lidl will boost wages for thousands of its workers in the UK, it said yesterday. Lidl said entry-level wages will increase from £8.75 an hour to £9 an hour outside of London and from £10.20 to £10.55 an hour within the capital. The increase will come into effect from 1 March next year, [...]
Give shareholders more say over audit, watchdog urged November 5, 2018 The UK’s competition watchdog has been encouraged to drive shareholder involvement in picking and overseeing company auditors, as it looks for ways to shake up the sector. In their responses to the Competition and Markets Authority (CMA) review of the audit sector, two shareholder bodies – the UK Shareholders’ Association (UKSA) and UK Individual Shareholders’ [...]
Employers prepare to hand 180,000 workers a pay rise as real living wage increases November 5, 2018 Over a third of FTSE 100 companies are set to hand workers a pay rise this week as the real living wage rises to £9 an hour, an increase of 25p on the hourly rate. At least 180,000 staff and sub-contractors will receive the salary boost, which in London will rise by 35p to £10.55 an hour. The [...]
Bosses should take blame for bad corporate reports, says Big Four’s EY November 4, 2018 One of the UK’s biggest audit firms has said top bosses and directors should take individual responsibility if their companies make errors in financial reports. EY, one of the Big Four audit firms, said regulators should adapt the US system of corporate responsibility, which stipulates C-level executives must personally confirm the integrity of their companies’ [...]
Mazars says joint audits and market caps are solution to audit sector woes November 4, 2018 Mazars, the professional services firm which is France’s fifth-largest auditor, has weighed in on the under-fire sector’s future, calling for market share caps and joint audits to disrupt the dominance of the Big Four firms. It is the first large audit firm to release its response to the Competition and Markets Authority (CMA), which is [...]
Barclays and Lloyds among the worst performers in EU bank stress test November 3, 2018 Barclays and Lloyds surprised markets yesterday after being named and shamed in the EU’s banking health check. The two British lenders were among the worst performers in the EU banking watchdog’s new report, which tested European banks and their ability to withstand a hypothetical market shock. While none of the 48 lenders fell below the [...]
End Big Four dominance using French-style joint audits, watchdog told November 1, 2018 Regulators should consider introducing a French-style joint audit system to break the Big Four’s stranglehold on the top end of the market, the industry body said yesterday. Responding to a fast-moving review of Britain’s audit sector, the Institute of Chartered Accountants in England and Wales (ICAEW) warned the Competition and Markets Authority (CMA) of the [...]