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Big Four dominates UK’s top firms audit

THE Big Four accounting companies led auditing of Britain's top listed firms last year and collected higher fees, the industry's regulator said on Wednesday (14).

Audit of all FTSE 100 companies was divided evenly among the top four - KPMG, EY, PwC and Deloitte, the Financial Reporting Council (FRC) said.


The Big Four last year also audited over 200 of the FTSE 250 firms, Reuters reported.

The four accounting firms also continued a trend of increasing the audit fee despite tough economic conditions last year. They raised average audit fees by 7.7 per cent, and their rivals by 4.7 per cent.

Meanwhile, the government-backed reviews proposed a revolutionary change for the audit industry after the collapse of retailer BHS and builder Carillion.

According to reports, PwC failed to flag significant doubts over the future of BHS in an audit that was completed just days before the collapse of the British retailer.

The industry review has also proposed to replace the FRC with a stronger regulator, to be called the Audit, Reporting and Governance Authority (ARGA).

"Improving competition across the audit market and ensuring audit firms focus, above all else, on delivering high-quality audit is essential to improving trust in audit and corporate governance and remains a key priority for the FRC as it transitions to becoming ARGA," FRC CEO Jon Thompson said in a statement.

However, the government is yet to present a legislation to implement the recommendations.

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Bank of England cuts interest rates to 3.75 per cent, signals caution on further reductions

Highlights

  • BoE reduces benchmark rate by 0.25 percentage points in tight 5-4 vote split.
  • Governor Andrew Bailey warns future cuts will be "closer call" with each reduction.
  • Sterling rises and gilt yields increase as markets react to cautious tone.

The Bank of England cut interest rates to 3.75 per cent on Thursday following a narrow vote by policymakers but signalled the gradual pace of lowering borrowing costs might slow further.

Five Monetary Policy Committee members voted to reduce the benchmark rate by 0.25 percentage points from 4 per cent, marking the fourth cut in 2025. Four members opposed the move, concerned about inflation remaining too high despite recent falls.

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