‘Big Four’ accountancy giants face UK probe

TIL Desk/Business/London/ Almost two decades after the collapse of US giant Enron in a notorious accounting scandal, the accountancy sector is back in the spotlight, this time thanks to a string of scandals in Britain. The sector’s so-called “Big Four” — Deloitte, EY, KPMG and PwC — have a long-established oligopoly to advise and monitor big business, experts say.

The powerful companies engage in a wide range of activities, from accounts auditing and strategy consulting to proposed mergers and acquisitions, restructuring and taxation. However, a series of high-profile corporate collapses in Britain — including retail giant BHS in 2016 and construction company Carillion in early 2018 — have put them into the crosshairs of the authorities.

The Competition and Markets Authority watchdog launched a sector review in October and is expected to report back before Christmas. Despite the controversy, firms feel they need one of the Big Four on their side as investors usually want to see their labels when they scrutinize the quality of companies.