The pressure from the British parliament to break up the Big Four companies is becoming increasingly palpable. The firms have drawn up contingency plans for such case. This includes the next two largest accountancy firms Grant Thornton and BDO.
These companies offer both audit and consulting services, so it is only natural that questions about the conflict of interest arise. Firms advising companies on accounting matters might have an incentive to be more lenient when auditing those companies. “I can’t believe the industry will be the same. We have to reduce the level of conflicts and . . . demonstrate why they are manageable and why the public and all stakeholders should trust us.” – said Bill Michael, chairman of KPMG’s UK business.