The damning conclusions of a parliamentary enquiry into the collapse of construction firm Carillion include a proposed shake-up of the UK’s audit market.
The enquiry’s conclusions strongly criticised the so-called Big Four audit companies: Deloitte, KPMG, PwC and EY.
The UK’s audit market is a “cosy club incapable of providing the degree of independent challenge needed”, the House of Commons joint select committee enquiry found.
The probe blamed a lack of competition in the audit market, which it said “creates conflicts of interest at every turn”.
Carillion went into compulsory liquidation in January 2018; the construction firm had been a FTSE-250 listed company in the UK before its financial collapse in 2017.
The Big Four
KPMG provided external audit for Carillion,…
