LONDON (Reuters) – PwC, Deloitte, KPMG and EY are expected to sound the seal audit as a separate business by June 2024 to improve the quality of the audit, Britain's accounting watchdog said on Monday.
Corporate failures at construction company Carillion and retailer BHS led to three government-backed reviews that recommended a change in the audit, but the government has not yet introduced legislation to require changes, partly due to Brexit and, more recently, the COVID-19 pandemic. .
The Financial Reporting Council has already started seeking voluntary changes to accelerate reform and said on Monday that it is asking the "big four" companies to agree to operational separation based on a set of principles they have already discussed with them.
An implementation plan must be submitted to the FRC by October 23 for implementation by June 30, 2024 at the latest, the regulator said.
(Reporting by Huw Jones; Editing by Jason Neely)