This morning’s expected decision by Equitable to drop a £700m claim against
Ernst & Young – combined with KPMG’s $456m (£255m) ‘settlement’ with the US
Department of Justice over helping clients avoid billions in tax – has seen the
potential collapse of two Big Four firms averted.
The summer of 2005 has been an eventful period for E&Y and KPMG, with
both firms racking up millions of pounds in costs, legal advice and, in KPMG’s
case, a massive fine at the hands of the DoJ.
Thankfully for those involved, both cases have concluded in the accountants’
favour. The firms will escape with only reputations tarnished at KPMG – and jail
time likely for a handful of key individuals – and a comparatively small legal
bill of about £20m in costs for E&Y.
However, the fact that both cases have been dragging on for such a long time
and both firms have had to put their reputations on the line, has reopened
arguments about what would happen should the Big Four become a Big Three – or
A new head of solutions, Aidan Brennan, has been appointed at KPMG UK
Hundreds of jobs are secure after Spectrum Contracting has been sold out of administration to Minstrell Recruitment by FRP Advisory
Cowgill Holloway and Warings Business Advisors have merged, with a range of growth plans in the North West put in place
The Practitioner discusses their timesheet militancy, and reaction to someone playing it fast and loose with the details...