The item headlined "Could the big four accountancy firms be broken up and what would happen if they were?" is written by Ben Chapman. The item under review is taken from "Independent".
The article tells us about what MPs have proposed about KPMG and what impact it might have.
MPs have proposed two ways: the first is breaking up KPMG into smaller companies and the second is dividing their audit and consultancy parts of the business.The committees say that there is not enough competition in the audit market because of KPMG so it's time to break up the big four. If KPMG will split up into smaller firms there is a possibility that two and maore smaller accountancy firms will audit large comanies. If audit and consultancy depatments of KPMG will split auditors will work for shareholders of the company they audit not its managers and it's the most obvious positive moment in this situation. Apart from the two committees of MPs, the head of the accountancy watchdog, the Financial Reporting Council, also said recently it was time to break up the big four.
In conclusion I can say that the article was very interesting and informative for me.
The headline of the article is Could the big four accountancy firms be broken up and what would happen if they were? It is written by Ben Chapman. The item under review is taken from “independent”.
The author in the article touches upon the problem of the fact that Pwc, Deloitte, KPMG and EY sign off the accounts of 97% of the UK's 350 largest listed companies. The author starts by telling the reader that MPs have said the stranglehold of the big four accountancy firms on the audit market needs to be broken and to refer the accountancy market to the competition regulator to investigate two possibilities. The first is breaking up KPMG, Deloitte, EY and PwC into smaller companies and the second possibility is that the big four “detach” the audit part of the business from consultancy. One possibility is that two or more smaller accountancy firms jointly audit large companies. The accountants produce a joint audit report and cross-check each other’s work, making it more reliable. Both firms are then liable for the contents of the report.
As far as I can tell, such a solution should help to cope with a number of problems in the audit.
I have found the article important and of great value.
The item headlined "Could the big four accountancy firms be broken up and what would happen if they were?" is written by Ben Chapman. The item under review is taken from "Independent".
ОтветитьУдалитьThe article tells us about what MPs have proposed about KPMG and what impact it might have.
MPs have proposed two ways: the first is breaking up KPMG into smaller companies and the second is dividing their audit and consultancy parts of the business.The committees say that there is not enough competition in the audit market because of KPMG so it's time to break up the big four. If KPMG will split up into smaller firms there is a possibility that two and maore smaller accountancy firms will audit large comanies. If audit and consultancy depatments of KPMG will split auditors will work for shareholders of the company they audit not its managers and it's the most obvious positive moment in this situation. Apart from the two committees of MPs, the head of the accountancy watchdog, the Financial Reporting Council, also said recently it was time to break up the big four.
In conclusion I can say that the article was very interesting and informative for me.
The headline of the article is Could the big four accountancy firms be broken up and what would happen if they were? It is written by Ben Chapman.
ОтветитьУдалитьThe item under review is taken from “independent”.
The author in the article touches upon the problem of the fact that Pwc, Deloitte, KPMG and EY sign off the accounts of 97% of the UK's 350 largest listed companies.
The author starts by telling the reader that MPs have said the stranglehold of the big four accountancy firms on the audit market needs to be broken and to refer the accountancy market to the competition regulator to investigate two possibilities.
The first is breaking up KPMG, Deloitte, EY and PwC into smaller companies and the second possibility is that the big four “detach” the audit part of the business from consultancy.
One possibility is that two or more smaller accountancy firms jointly audit large companies. The accountants produce a joint audit report and cross-check each other’s work, making it more reliable. Both firms are then liable for the contents of the report.
As far as I can tell, such a solution should help to cope with a number of problems in the audit.
I have found the article important and of great value.