Financial Accounting News

KPMG Is Said to Stop Consulting for U.K. Companies It Audits

Nov. 8, 2018, 4:54 PM

KPMG will stop performing consulting and other non-accounting work in Britain for companies it also audits in an attempt to address conflict-of-interest concerns, according to a person familiar with the firm’s decision.

The U.K. Competition and Markets Authority is scrutinizing KPMG and the three other Big Four accounting firms—Deloitte, EY, and PricewaterhouseCoopers—after Carillion Plc, a facilities management and construction firm, collapsed and was liquidated earlier this year. Carillion, which performed key government contracts, was a KPMG client.

The CMA wants to know if auditing firms are soft-pedaling their reviews of their clients’ books to curry favor to win consulting business....

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