Beautiful Virgin Islands

Saturday, Jan 28, 2023

KPMG warns British corporate giants of big hike in audit fees

KPMG warns British corporate giants of big hike in audit fees

Companies such as Barclays and Reckitt Benckiser face steep increases in their audit fees next year, partly because of inflated staff costs, KPMG has said in a note to clients seen by Sky News.

The big four audit firm KPMG warned some of Britain’s biggest companies that they faced substantial increases in their audit fees just weeks before giving thousands of staff substantial pay rises.

Sky News has learnt that KPMG has notified listed audit clients that the cost of scrutinising their accounts would rise by up to 20% next year.

The move threatens to add millions of pounds to the annual bills facing companies such as Barclays, Legal & General, Reckitt Benckiser and Standard Chartered.

In a letter to clients sent by Catherine Burnet, KPMG UK's head of audit, the firm said cost pressures driven by revised accounting standards meant that audits were becoming more heavily resourced.

"Audit quality remains our top priority, and we are committed to delivering consistently high-quality audits," she wrote in a letter to one client seen by Sky News.

"We've made good progress supported by our record levels of investment but there is still more to do.

"We are committed to continuous improvement and investment.

"As you may know, we are facing a number of additional upward cost drivers, notably the requirements of the revised ISA (UK) 315, which we estimate will add between 5 and 20% to base audit costs, as well as significant inflationary pressures in relation to staffing costs and recruitment."

KPMG's UK arm has been hit by a string of multimillion-pound audit fines, the most significant of which came this month when it was hit with a near-£15m penalty for its work on Carillion, the construction giant which collapsed in 2018.

The firm, now run by Jon Holt, apologised for deficiencies in its work, but faces a £1.3bn legal claim brought by the Official Receiver.

Last year, the industry regulator, the Financial Reporting Council, said KPMG's audit work in the banking sector was inadequate.

The firm has overhauled its management in the last 12 years, with the previous UK chairman, Bill Michael, stepping down following comments made on a video-call with colleagues.

Earlier this month, KPMG handed staff pay rises worth at least £2,000 amid an intensifying recruitment battle across the professional services sector.

The audit profession has been anticipating a far-reaching overhaul of its regulation since the demise of Carillion and BHS, the department store chain previously owned by Sir Philip Green.

However, while the recent Queen's Speech included a provision for draft legislation encompassing audit reform, the most radical changes are still likely to be years away - if they materialise at all.

The firm declined to comment on the prospective increase in audit fees.

Newsletter

Related Articles

Beautiful Virgin Islands
Close
0:00
0:00
Tesla reported record profits and record revenues for 2022
I have a dream, MLK inspiring speech
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Aretha Franklin, Marvis Staples - Oh Happy Day
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
BVI Freedom Song
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Billy Preston - You Can't Beat God Giving (Live)
Who’s Threatening Israeli Democracy?
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Federal Reserve Probes Goldman’s Consumer Business
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
China's first population drop in six decades
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Hello Dolly
Tesla slashes prices globally by as much as 20 percent
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
Bob Marley - Get Up Stand Up
After Failing To Pay Office Rent, Twitter May Sell User Names
Yes He Can
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
What A Friend We Have In Jesus
FIFA president questioned by prosecutors
Unforgettable
Britain's Sunak breaks silence and admits using private healthcare
Touch The Hem Of His Garment
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
The Lord's Prayer
Saudi Arabia set to overtake India as fastest-growing major economy this year 
THE GOD MOVEMENT...BEAUTIFUL BVI
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
Siyahamba
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
TikTok CEO Plans to Meet European Union Regulators
Ramblin' Rose
UK chaos: Hong Kong emigrants duped by false prospectus
Protoje - Who Knows ft. Chronixx
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Pressure - Virgin Islands Nice
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Phil Wickham - House Of The Lord
Will Canada ever become a real democracy?
My God Is Real (Yes, God Is Real)
Hong Kong property brokerages slash payrolls in choppy market
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Louis Armstrong - When The Saints Go Marching In
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Kanye West Sunday Service - hallelujah, salvation, and glory
Coinbase to Pay $100 Million in Settlement With New York Regulator
Jonathan Nelson - I Believe (Island Medley
FTX assets worth $3.5bn held by Bahamas securities regulator
From The Virgin Islands Sqad Up
Common, John Legend - Glory
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
×