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An end to non-audit add-ons?
09 November 2018
Two of the Big 4 look set to agree to put a self-imposed ban on them selling extra services to their audit clients.
KPMG and Deloitte have backed the idea of stopping non-audit work for FTSE 350 clients if they are already auditing them.
A KPMG memo from chairman Bill Michael told partners this would “remove even the perception of a possible conflict” of interest.
If KPMG phases out all but essential non-audit services for the 90 firms it audits this will put pressure on the other firms to follow suit.
Sources close to Deloitte say it has had similar discussions at senior levels.
The moves are in response to the Competitive and Markets Authority review, which is looking at whether the sector is competitive and resilient enough.
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