• Register
Return to: Home > News > Big Four to face further scrutiny

Big Four to face further scrutiny

The Big Four could face scrutiny from the UK’s Competition and Markets Authority (CMA) following the appointment of Andrew Tyrie as its new chair.

Tyrie has described the Big Four as an “oligopoly” and has reportedly said the lack of competition within the audit market is something that needs to be looked into.

The idea of breaking up the Big Four was suggested earlier this year in the UK when KPMG and Deloitte were questioned by members of the UK parliament about their role in the collapse of Carillion. This was prompted due to the concerns about their impartiality when providing both auditing and advisory services to the company.

The lack of trust in the Big Four has grown over the last few months, which led to the UK’s Financial Reporting Council (FRC) to review its sanctions for when poor audit work is conducted by a Big Four firm.

The FRC suggested that the amount of fines should be increased to £10m ($13.9m) or more for seriously poor audit work. The review in the sanctions also suggests that non-financial penalties should be implemented such as excluding perpetrators from the accounting profession for a minimum of ten years for dishonesty.

Tyrie’s comments presents another angle from which the Big Four are being scrutinised, not just from the questions raised on their ability to offer impartial auditing services, but also due to their dominance within the industry.

Following the approval of the UK’s Business, Energy and Industrial Strategy Committee, Tyrie is due to take up his position in June.

 

Top Content

    Time pressure: Facing up to mental health

    In an ‘always on’ culture, it is becoming increasingly difficult to manage a healthy work-life balance. While companies are beginning to address this problem by introducing different support systems, Joe Pickard finds more could be done to ensure the wellbeing of the professions workforce.

    read more

    Venezuela: the race for the dollar

    With a new currency following hyperinflation, large sections of the population emigrating to neighbouring countries, an economy on the brink of collapse and no apparent solution coming from the government, Jonathan Minter finds a profession struggling to stay afloat in Venezuela.

    read more

    Brazil: transparency and control

    Brazilian accountants have an optimistic view of the impact of more-regular reporting and the implications of audit controversies for the profession. Paul Golden reports.

    read more

    Argentina: looking for a clearer view

    The Argentine accounting profession continues to grapple with the impacts of a weak economy and a culture of financial corruption. Paul Golden takes a closer look.

    read more

    Blockchain: adapting to disruptive tech

    In the relatively few years since digital currencies first began using blockchain technology, the array of potential applications has grown significantly – and continues to expand. Dan Balla, Matthew Schell and Dave Uhryniak from Crowe look at how it impacts accountancy.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.