The merger talks in place between Moore Stephens and BDO have brought the big 4 accountancy firms under pressure. In a new move that was designed to introduce a new fifth firm that is capable enough to advise the firms in FTSE 100.
This new business was set to be larger as compared to Grand Thornton that has struggled in order to break through the larger lucrative market meant for the advice work for top corporations in Britain. The talks going between both parties have escalated quickly. However, it was completely unclear whether both parties shall be ready for the announcement of the deal this week.
This news comes down at a very crucial moment for the accountancy industry. It is under an increased scrutiny by the parliament following the series of several scandals going on among the companies like Carillion, Patisserie Valerie, and BHS.
The government recently called in for a complete and comprehensive review earlier during the year for Britain’s Auditing Industry. Greg Clark, Business Secretary commented that it was a right decision to have learned the lessons to apply the same without any delays. This statement came down as he pitched in for an inquiry overlooking the competition set within this industry where PwC, KPMG, Deloitte, and Ernst & young audit for about 98 percent of the United Kingdom’s largest of all the listed companies.