KPMG agrees more firms needed in accountancy sector

The UK chairman of KPMG has acknowledged that the accountancy sector is in need of more firms alongside the 'big four' to boost competition.

Figures show that 99 per cent of the UK's companies are audited by the big four accountancy firms.

Speaking on BBC Radio 4's Today programme, chairman John Griffith-Jones, said that he would welcome the competition but pointed out that it is difficult for other firms to rival the big four.

Mr Griffith-Jones said: "I think we're all agreed that four is probably a few short of a party. The real issue is how to go from four to a larger number.

"Personally I wish there were more because then there would be less discussion about our dominance of the market.

"I think that is the issue, that in order to audit the world's largest companies you have to have an international network, and obviously if you're a medium sized UK firm putting together an international network to rival the big four's long established network is actually quite a tough job."