World’s top four audit firms to split up

THE world’s top four audit firms will have to split up and rename themselves under a far-reaching draft EU law to crack down on conflicts of interest and shortcomings highlighted by the financial crisis.

“Investor confidence in audit has been shaken by the crisis and I believe changes in this sector are necessary,” Internal Market Commissioner Michel Barnier said yesterday.

Large auditors said the plans will not improve audit quality, while smaller rivals accused Barnier of a climbdown.