Big audit firms launch pre-emptive defence
Professional bodies and large firms have begun a counter-offensive emphasising the value of audit ahead of market reforms expected from Europe. Nick Huber reports.
Auditors seem a little defensive. The reputation of big audit firms was damaged by the financial crisis after they signed off banks’ accounts shortly before the companies collapsed or needed rescuing by governments.
Audit fees have been squeeze. And plans to change to European audit rules – raising the turnover threshold for when small businesses need an audit and requiring big companies to change auditors more regularly and restricting the sale of consultancy services to audit clients – could further dampen the audit market for small and large companies.
Some of the big accounting firms have begun a PR fightback.
In the past few weeks, KPMG and Baker Tilly have issued separate reports highlighting broad business support...