Survey shows backing for KPMG openness campaign

KPMG claimed this week to have overwhelming backing from the UK’s top companies for its decision to disclose plc-style financial information after a private poll revealed over 93% were in favour of greater disclosure from audit firms.

Banks and investment companies, in particular, also want accountancy firms to be externally audited, the poll reveals, in what KPMG said was a widespread demand for an open relationship between auditors, their clients and the wider community.

Senior partner Colin Sharman said: ‘It is not only a public gesture. We are trying to be more open inside the business as well.’

The poll kicked off KPMG’s ‘openness’ campaign which will include media advertising across the UK on billboards, national and local radio stations.

The firm said it was also setting up a freephone inquiries line guaranteeing a 48-hour response while a separate study would track shifts in public awareness about disclosure.

KPMG will take comfort from the high level of support in the poll for auditors to provide access to greater financial information following its decision to issue plc-style financial results last year. Only Ernst & Young, due to release results in December, has said it will increase the amount of financial information available to the public.

But the move to incorporate KPMG’s audit practice has failed so far to persuade other firms to follow suit. Price Waterhouse and E&Y are planning to set up limited liability partnerships in Jersey early next year.

The poll, which surveyed 75 of the UK’s top 300 companies, 20 banks and 20 investment companies, revealed 65% support for the move to incorporate although 50% expressed reservations about offshore registration.

Several partners at rival firms also said they would refuse to disclose more financial information until the Government resolved the joint and several debate.

One said: ‘Of course companies want more information from their auditors, but you have to ask yourself why. In KPMG’s case, it will show the assets and capital tied up in the audit practice and, therefore, how much they can be sued for. Our clients want to know they can sue the shirt off our back.’