Codestone

Category: Accounting software

Some of the audit industry's largest users of accounting software may soon be asked to reorganise their operations, as authorities aim to improve standards across the board.

The four biggest hitters in the sector – KPMG, Ernst & Young, PricewaterhouseCoopers and Deloitte – have been told by Michael Barnier, internal market commissioner at the European Union, that splitting their European bodies could be the key to an upturn in quality, reported the Financial Times.

It is thought that separating audit and consulting arms of each business may instigate an improvement in standards when it comes to working with accounts.

Mr Barnier's proposal comes soon after he shelved plans to force the large firms to share their workload with smaller companies.

Another of his ideas – to make it compulsory for organisations to change their auditor every six years – has been backed.

Earlier this week, Jean Stephens, chief executive of RSM International, told the newspaper that it is important Mr Barnier does not allow his plans for improvements to the accounting market to be "watered down".

Posted by Shannon Wells