Unless KPMG is now publicly ditched by a raft of big clients (which is unlikely), we may never know the damage inflicted on its reputation by the insider trading scandal involving the former head of its Los Angeles audit practice.
But for the firm’s chairman Michael Andrew to dismiss it already as “a one-day wonder” in “a slow news week” was silly and premature. There may come a time when Mr Andrew should come out fighting, but it is not yet. Read more
European Union commissioner Michel Barnier’s proposals for tough new rules for audit firms have the Big Four professional services firms in a lather.
As the specialist journal Accountancy Age puts it:
Big Four interests are most threatened by Barnier’s proposals. At their size, they will cop the full force of regulation completely separating audit and non-audit services, potentially compelling them to split and trampling on their business model.