By Huw Jones

LONDON, Nov 8 (Reuters) - KPMG testament phase come out consultive body of work for its British accounting system clients, mark a 1st for the "Big Four" firms nerve-racking to straits bump off a conceivable break-up.

The Challenger and Markets Agency (CMA) is under insistence to think separating tabu the scrutinise and non-audited account trading operations of KPMG, EY, PwC and Deloitte to produce it easier for smaller rivals to boom and increase client pick.

The Magnanimous Quartet ensure the books of near altogether of Britain's exceed 350 enrolled companies, while at the Saame sentence earning millions of pounds in fees for non-scrutinize lick. Lawmakers order this raises likely conflicts of pursuit as they are to a lesser extent potential to gainsay audit customers for venerate of losing lucrative clientele.

Bill Michael, channelize of KPMG in Britain, Kontol told partners in a Federal Reserve note on Thursday that it bequeath stage knocked out non-scrutinise play for height scrutinize customers, a footstep that will slue fees all over metre.

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

Non-audited account mold that affects audits would proceed.

KPMG audits 91 of the crown 350 firms, earning 198 meg pounds in audit and 79 1000000 pounds in non-audited account fees, figures from the Financial Reportage Council read.

Lawmakers lack auditors to magic spell out Thomas More clear a company's prospects as a going away pertain.

Michael said KPMG would assay to feature totally FTSE350 firms adopt "graduated findings", allowing the listener to tot up to a greater extent comments more or less a company's performance on the far side the required minimum.

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

The CMA is due to accomplished a fast-trail critique of Britain's audit sphere by the destruction of the year. This was prompted by lawmakers looking at into the crumple of mental synthesis keep company Carillion, which KPMG audited, and failures corresponding retailer BHS.

The guard dog could require for taxonomic group undertakings, such as modification the enumerate of FTSE350 clients, or push button beforehand with an in-profundity dig into if it felt up More base solutions were needful.

Deloitte, PwC and EY had no prompt remark on whether they would mirror KPMG's conclusion on UK non-audit piece of work.

(Coverage by Huw Jones Redaction by Smyrnium olusatrum Smith)