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S. Africa Seeks to Break Up Big Four Auditors After Scandals (1)

March 11, 2020, 9:44 AM

South African regulators are stepping up efforts to break the oligopoly of the country’s top auditing firms after accounting scandals involving two of the Big Four failed to do the job for them.

The nation’s largest publicly-traded companies are reluctant to switch to mid-tier firms out of concern they may not be able to handle complex operations often sprawled across Africa or further abroad. That’s spurring smaller firms to scale up and hire teams in anticipation of new rules aimed at dismantling the dominance of PwC, Deloitte, EY and KPMG.

The industry has been in turmoil since late 2017, when ...