• Register
Return to: Home > News > Financial Results > UK MPs quiz Big Four on hospitality spend for potential clients

UK MPs quiz Big Four on hospitality spend for potential clients

The UK Government’s Business, Energy and Industrial Strategy Committee (BEIS Committee) has questioned the Big Four over how much they spend on hospitality for prospective clients.

In a letter sent to all of the Big Four, BEIS Committee chair Rachel Reeves asked the firms to detail their overall spend on FTSE 350 client hospitality, entertainment provided to audit clients and how many events of this kind were held over the last five years.

She also asked how much was spent on non-audit clients which subsequently became audit clients.

Alongside this information, Reeves asked for information regarding how audit staff remuneration and progression is affected by audit quality issues and the targets that are set for senior audit managers to progress to audit partner level.

An EY spokesperson said: “EY is committed to taking an active part in all current reviews into the audit market and will continue to respond to information requests from the BEIS select committee.”

The letters followed a number of oral evidence hearings held at the end of January and beginning of February for the BEIS Committee’s Future of Audit investigation.

This is just one of many investigations focussing on the audit market currently taking place in the UK. The Competition and Markets Authority (CMA) published its initial review on competition in the FTSE 350 audit market at the end of last year, as did the Kingman Review which has called for the UK’s Financial Reporting Council to be replaced. 

At the end of last year, The Brydon Review was also launched and is focussing on the so-called expectation gap of audit and to see if current audit standards are still fit for purpose for 21st century business models.

The reviews were launched following a number of high profile company failures over the last couple of years which has brought the role of auditors to the attention of the general public.

Top Content

    MSI joins AGN and DFK in Global Connect

    A year after AGN International and DFK International launched Global Connect, multi-disciplinary association MSI has joined the group.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    The UK: uncertain waves rule Britannia

    The UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    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.