|
The move comes almost a year after the competition watchdog recommended that the government legislate to force the firms to split audit from consulting roles amid concerns about their dominance and conflicts of interest in the scandal-hit industry.
But with no signs of imminent legislation from ministers, the FRC is pressing the firms to embark on a voluntary break up as part of efforts to improve the quality in auditing. The FRC wants the firms to make their audit operations financially independent businesses, with separate boards led by independent chairs.
The FRC is due to be replaced by a stronger regulator called the Audit, Reporting and Governance Authority, which is expected to have powers to force a break-up of the big four.
A spokesperson for the regulator said: “It does not look like we are going to get any legislation any time soon, so we are moving ahead under our own steam to push firms to make suitable changes to ensure sustainability and transparency in audit.”
Full article on Financial Times (subscription required)
Related article on Sky News: "Regulator tells big four auditors to accelerate break-up plan"