EY to spend $2bn on improving audits after Wirecard scandal September 9, 2021 EY will invest around $2bn (£1.4bn) over three years to improve the quality of its audits after the high-profile collapse of payments company Wirecard, according to the Financial Times who first reported the news. The funding is part of a larger, and record, $10bn investment plan, announced by EY yesterday, to finance staff training and [...]
KPMG wants nearly a third of staff to be from working class backgrounds September 9, 2021 In a first for a large business in Britain, KPMG has set a target for 29 per cent of its UK partners and directors to come from a working class background by 2030, the company said in an announcement today. Currently less than a quarter of KPMG’s partners, and a fifth of its directors, are [...]
Deloitte global revenue rises to $50bn with surge in Covid consulting September 8, 2021 Deloitte has today reported a 5.5 per cent rise in its global revenue for 2021 up to $50.2bn as it has seen demand for its advisory services grow during the pandemic. The firm also saw its workforce grow by 3.2 per cent to over 345,000 for the fiscal year ending 31 May 2021. The big [...]
KPMG boss intervenes in dispute with FRC over poor auditing standards September 7, 2021 The global head of KPMG has written to the UK’s Financial Reporting Council (FRC) over the its threats to publish further criticism of the auditor’s repeated failings, the Financial Times first reported. Bill Thomas, KPMG’s global chair and chief executive, entered the increasingly public dispute between the big four auditor and the FRC, after executives [...]
EY hit with $1bn claim for one of the largest bankruptcies in Swiss history September 7, 2021 EY’s Swiss practice is facing investor claims for giving clean audits to opaque conglomerate Zeromax for years before it collapsed, according to the Financial Times who first reported the news. Zeromax, whose crash in 2010 made it the second-largest bankruptcy in Swiss history, made multimillion-dollar jewellery purchases and made irregular offshore payments – which the [...]
FRC to ‘strengthen’ audit governance code to tackle Big Four accounting scandals August 26, 2021 The Financial Reporting Council (FRC) has today announced proposals to update and “strengthen” its Audit Firm Governance Code and establish “operational separation” at the Big Four firms. The proposed changes are aimed at clarifying the role of partnership boards in holding management to account, said the UK accounting watchdog in a statement. A key proposal [...]
EY handed fine for botched Stagecoach audit August 25, 2021 The Financial Reporting Council (FRC) has landed EY and its Audit Engagement Partner, Mark Harvey with £2.3m in fines. The FRC said that an EY audit of StageCoach, an international travel company, “did not satisfy the audit reporting requirements” for the 2016-2017 financial year. Claudia Mortimore, the Deputy Executive Counsel to the FRC said: “the [...]
PwC partner accused of leaking in £63m lawsuit leaves firm August 18, 2021 Ian Green, the former PwC head of restructuring, left the firm on 30 June according to Companies House filings, following accusations by Watchstone that he leaked confidential information about the PwC client. Aquis Exchange-listed Watchstone, an insurance and technology group, have said that Green disclosed its information to a banker at Greenhill & Co in [...]
Big Four refuse to back government plan to break dominance of audit market August 16, 2021 The UK’s Big Four accountancy firms have refused to back a government scheme that would see them share audit work with smaller firms. Last month, Deloitte, EY and PwC said they did not support the government’s proposal for “managed shared audits” of large listed companies. The Financial Times has reported that the other Big Four [...]
German MPs fail in bid to publish ‘dynamite’ report on EY’s Wirecard audits August 13, 2021 Germany’s highest court has rejected an attempt by MPs to force the publication of an unredacted report into EY’s audits of Wirecard, according to reports. The lawsuit was filed by MPs who had investigated the Wirecard fraud, one of the biggest corporate scandals, according to the Financial Times. The Federal High Court of Justice has [...]