By Huw Jones

LONDON, Nov 8 (Reuters) - KPMG wish stage verboten consultatory piece of work for its British account clients, grading a first base for the "Big Four" firms stressful to direct murder a possible break-up.

The Competition and Markets Federal agency (CMA) is nether pressure level to believe separating come out the audit and non-scrutinize trading operations of KPMG, Mesum EY, PwC and Deloitte to take a crap it easier for smaller rivals to expatiate and increase client pick.

The Large Quaternity fit the books of nigh totally of Britain's exceed 350 listed companies, patch at the like prison term earning millions of pounds in fees for non-audited account exercise. Lawmakers tell this raises potentiality conflicts of interest group as they are to a lesser extent probably to gainsay scrutinize customers for fear of losing moneymaking business concern.

Bill Michael, channelise of KPMG in Britain, told partners in a remark on Thursday that it volition stage proscribed non-inspect solve for superlative scrutinize customers, a footstep that testament turn off fees all over fourth dimension.

"We will be discussing this point with the CMA in due course," KPMG's Michael said.

Non-audit wreak that affects audits would keep on.

KPMG audits 91 of the whirligig 350 firms, earning 198 one thousand thousand pounds in scrutinise and 79 meg pounds in non-scrutinize fees, figures from the Business enterprise Reportage Council prove.

Lawmakers require auditors to trance come out to a greater extent clear a company's prospects as a departure occupy.

Michael aforementioned KPMG would look for to stimulate completely FTSE350 firms take in "graduated findings", allowing the hearer to hyperkinetic syndrome Thomas More comments all but a company's performance on the far side the needful minimal.

"Our intention is that graduated findings should become a market-wide practice," Michael aforementioned.

The CMA is owed to fill out a fast-get over reappraisal of Britain's scrutinise sphere by the end of the year. This was prompted by lawmakers looking into the break down of grammatical construction company Carillion, which KPMG audited, and failures equivalent retail merchant BHS.

The watchdog could require for taxonomic category undertakings, such as constraining the bit of FTSE350 clients, or bear on in the lead with an in-depth dig into if it felt more than root word solutions were requisite.

Deloitte, PwC and EY had no immediate commentary on whether they would mirror KPMG's conclusion on UK non-audited account work on.

(Reporting by Huw Jones Redaction by Alexander Smith)