Fees paid to FTSE 100’s auditors hit record sums of more than £1bn December 20, 2022 The UK’s top 100 listed companies paid more than £1bn to their auditors for the first time in 2021/22, following a steady uptick in audit fees linked to a tougher stance from the UK’s accounting regulator. FTSE 100 companies paid a record £1.01bn to their auditors for both audit and non-audit services, in the year [...]
EY names new leaders of globally separated firms December 14, 2022 EY has named two of its top leaders as heads of the firm’s soon-to-be separate audit and advisory businesses, as it pushes forwards with plans for a global split. EY said current chief executive Carmine Di Sibio will head the new consulting business – NewCo – as it named US managing partner Julie Boland [...]
KPMG chief snubs global split as consulting arm drives growth in revenues December 13, 2022 The global head of KPMG today slapped down suggestions it might follow EY in pursuing a global split, in claiming the accounting firm’s strong financial performance “validates” its current approach. KPMG chief executive Bill Thomas rejected plans for a split in claiming the Big Four firm’s results “validates an unwavering commitment to deliver services… through [...]
BDO partners see payouts drop following £70m hiring spree November 30, 2022 BDO’s managing partner today said the firm will continue investing in long-term growth after partners saw their payouts drop 15 per cent as the result of a £70m spending spree. Speaking to City PM Paul Eagland also refused to rule out a firm-wide split as he signaled BDO may follow EY in separating its audit [...]
Use artificial intelligence to navigate volatile economy, audit body says November 29, 2022 Artificial Intelligence (AI) and data analytics tools will play a “key” role in helping auditors navigate the volatile economic conditions the world is facing in the wake of Covid and the war in Ukraine, one of the UK’s largest audit trade bodies has said. The Chartered Institute of Internal Auditors (CIIA) said auditors should “embrace” [...]
KPMG’s failings led to Carillion’s collapse, High Court lawsuit says November 28, 2022 KPMG’s incompetence in its audits of Carillion played a core part in the construction giant’s 2018 collapse, Carillion’s liquidators have said, as part of a £1.3bn lawsuit against the Big Four accounting firm. KPMG’s 2016 audit of Carillion lulled the construction firm’s board into a false sense of security that saw the firm make a [...]
EY split could undermine audit quality, former partners warn November 17, 2022 More than 150 former EY partners have written a letter to the accounting firm’s board, warning its plans to split in two could weaken both segments of the business and undermine EY’s audit quality. The ex-EY partners noted the firm’s new standalone audit business – AssureCo – will have “significantly lower” earnings than its advisory [...]
EY to delay partner votes due to complex legal wrangling November 14, 2022 Votes on plans to split EY in two are not set to begin until the start of next year, after being delayed by legal wrangling. The ballots, which were set to start this month, will not take place until early 2023, due to the complexities the firm has faced in finalizing the legal framework through [...]
FRC fines hit record highs as watchdog sends ‘clear message’ to UK’s audit sector November 14, 2022 The UK’s Financial Reporting Council (FRC) fined auditors a record £33.3m in the year running up to 30 September 2022, new figures from Thomson Reuters Confirmation shows. The record high sum marks a 77 per cent increase on the £18.7m fines – after discounts and adjustments – handed out in the previous year. The [...]
Cypriot PwC partners set up new firm to continue working with Russian clients November 8, 2022 Three ex-partners from PwC’s Cyprus office have left the Big Four accountancy firm to set up a new rival practice in order to continue working with Russian clients. The launch of KiteServe comes after the three ex-PwC partners took early retirement from the Big Four firm in June, after its sanctions policy blocked them [...]
