KPMG is planning to overhaul its British business to create an independent audit firm, as per a report by The Times. The overhaul will happen regardless of any decision by the competition regulator to force a break-up of the Big Four accounting firms.

As per the report, KPMG's audit practice has 200 partners and about 5,000 staff, who could move to a standalone entity or to a subsidiary of KPMG if it goes ahead with the overhaul.

The development comes in the wake of Parliament's business committee last week urging the Competition and Markets Authority (CMA) to force EY, KPMG, Deloitte, and PwC to separate audit and consultancy services to improve standards and transparency in book-keeping after audit failures at construction company Carillion and retailer BHS.

The Big4 i.e. EY, KPMG, Deloitte and PwC have sought to head off being split up by voluntarily agreeing not to offer consultancy services to audit clients.

Meanwhile, the government is expected to propose legislation to implement the audit shake-up once the CMA has published its final recommendations on the matter in the coming weeks.

Image Credits: BBC.com