3 August, 2021

Audit keeps failing—here’s why a fundamental change is needed

The frequency with which companies fail—seemingly without any warning signs—has grown in recent years, with Wirecard the latest example. Auditing needs reform.

Image: Ascannio/Shutterstock

A massive shakeup of the UK’s audit industry is on the cards. The Big Four, which audit all of the FTSE 100 and 21 of the FTSE 250, have been told by the accounting regulator to separate their auditing practices by 2024. It follows the collapse of Wirecard, a payments firm which recently admitted that €1.9 billion of the cash on its books may not exist. But change has been a long time coming. The frequency with which companies fail—seemingly without any warning signs—has grown in recent years and Wirecard is merely the latest example. Carillion, BHS, Thomas Cook, Patisserie Valerie, and many other companies were given clean bills o

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audit, audit reform, Big Four, Deloitte, EY, Ifedapo Francis Awolowo, KPMG, Nigel Garrow, PwC, The Conversation