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KPMG announced new executive structure
17 May 2019
KPMG UK has unveiled a new governance structure in direct response to recommendations from the Competition & Markets Authority’s call for an operational split between the Big 4 firm’s consultancy and audit businesses.
Effective from 1 June 2019 the new structure will introduce more separate performance management and governance of the firm’s audit practice, with says KPMG a primary focus on driving quality.
A new Audit Executive Committee will assume responsibility for the audit businesses performance, risk and control management. The firm’s Head of Audit will be Jon Holt. KPMG’s current Head of Audit, Michelle Hinchliffe, will join the firm’s UK board as the Chair of Audit (a newly created role).
KPMG stresses that these changes do not mark the separation of the firm’s UK audit practice from the rest of the firm, but will “deliver on many of the recommendations proposed by the CMA and the BEIS Select Committee in their recent reports on the profession.”
Bill Michael, chairman and senior partner, at KPMG UK said: “We’re serious about making changes to restore trust in audit. We understand concerns that the profession’s operating models have become too opaque and we are taking action to tackle these. The sole aim and focus of our Chair of Audit, our new Audit Executive and our Audit Oversight Committee is to drive audit quality, via strong leadership, good governance, rigorous controls, independent decision-making and separate performance management from the rest for the firm.”
However, these changes do fall short of a fall split of audit and consultancy. A CMA spokesperson said that while the changes are welcome they do not “address all of our concerns”.
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