Singapore will do well to keep close eye on UK audit industry shakeup

BRITAIN'S parliament will launch an inquiry into the nation's scandal-hit auditing industry in the new year - a move that could result in sweeping changes to the way audits are carried out and the firms (namely, the Big Four) that predominantly perform them.

While changes to the auditing industry in the United Kingdom might not have an immediate impact on public accounting firms in Singapore - as these tend to operate as independent entities in their various jurisdictions, albeit as part of a larger network of firms - they are likely to have a knock-on effect here. As the changes in the UK are likely to be extensive, the industry and corporate arena here ought to take heed.

Britain's parliamentary inquiry comes after a series of high-profile corporate failures there - such as the collapse of construction group Carillion and retailer BHS - revealed serious inadequacies in the auditing process.