The rise-and-rise of private equity (PE) ownership of UK audit firms is causing ripples of concern within the industry.
Continual media interest has meant the Financial Reporting Council has now officially warned firms that audit quality, independence, and public interest focus need to remain the top priorities, no matter who owns the firm.
A leading audit partner told PQ magazine: “If everyone has sold out before you get there, how do you provide an incentive for the partners of the future?” She felt PE takes away the aspiration in firms. “If I want to be an owner of the firm where’s my opportunity?” she said. And, she felt PE was just an excuse for the current partners to max out their returns. She worried that it was all very shortsighted.
One man who also has very clear thoughts on private equity is Lord Sikka.
Read the full story in the November issue of PQ magazine, out now at:https://issuu.com/pqpublishing/docs/pq_nov24_issue
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