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May 18, 2010 Tuesday
Report: KPMG, PwC could make move into credit ratings business
Accounting firms KPMG and PricewaterhouseCoopers have both contemplated making a move into the credit rating business, London’s Financial Times reported.
Accounting firms KPMG and PricewaterhouseCoopers have both contemplated making a move into the credit rating business, London’s Financial Times reported May 16, citing company representatives.
John Griffith Jones, KPMG’s U.K. chairman and Europe co-chair, told the publication that his firm had considered the move but is not actively pursuing it at this point in time.
Similarly, Richard Sexton, PricewaterhouseCoopers’ U.K. head of assurance, said his firm will look for places to expand its business from its core focus, the news source reported.
However, one issue related to accounting firms giving such ratings is possible conflicts of interest as the firms receive compensation from the companies they audit, Griffith Jones said. He told the publication he believes auditors should provide subjective opinions for the companies they audit to provide a sense of how risky a business may be.
May 24, 2010