Big Four UK Firms Deemed on Track for Audit, Consulting Split

The UK’s four biggest audit firms have met a deadline for taking steps to separate the work of their accounting and consulting arms as part of a deal with the industry’s regulator meant to increase independence.

The Financial Reporting Council on Thursday praised the Big Four’s efforts to prioritize audit quality by splitting their operations while retaining ownership of both arms. Under the initiative, the firms have set up independent audit boards and established more transparency over financial transactions between their audit and non-audit arms.

The operational separation stems from a voluntary deal the watchdog struck in 2020 with Deloitte, ...