BDO lines up complaint against KPMG Brazil
BDO chief Jeremy Newman unhappy about losing a Brazilian firm to KPMG
A COMPLAINT could be lodged by BDO into the defection of its Brazilian member firm to KPMG.
Announcing the appointment of a new member firm for the country, BDO CEO Jeremy Newman heavily criticised the tactics behind KPMG Brazil’s acquisition strategy.
“BDO is not the first firm to have suffered as a result of our larger competitors using their dominant financial position to buy market share and we have expressed our concerns about this in BDO’s recent submission to the European Commission’s Green Paper on the role of the audit profession,” said Newman.
“These tactics are not driven by client needs but by one firm’s wish to buy market share and presumably achieve further economies of scale. We are concerned that when one firm looks to dominate it reduces choice for clients and leaves the market worryingly dependent on just a few players. BDO will be lodging an objection to this deal with the Brazilian competition authorities.”
BDO’s new Brazilian member firm is RCS Auditores Independentes, which was formerly part of the Crowe Horwath network.
The former BDO member firm is expected to complete its deal with KPMG on 31 March.
