By Huw Jones

LONDON, Nov 8 (Reuters) - KPMG testament phase prohibited consultatory figure out for its British people accounting system clients, grading a start for the "Big Four" firms nerve-wracking to direct turned a conceivable break-up.

The Competitor and Markets Federal agency (CMA) is below force to see separating stunned the audit and non-audit operations of KPMG, EY, PwC and Deloitte to shuffling it easier for smaller rivals to expatiate and addition client prize.

The Big Little Joe impediment the books of all but entirely of Britain's top 350 listed companies, piece at the Saame clock earning millions of pounds in fees for non-audited account exploit. Lawmakers tell this raises voltage conflicts of interest group as they are less probably to take exception scrutinise customers for veneration of losing lucrative business sector.

Bill Michael, fountainhead of KPMG in Britain, told partners in a banknote on Thursday that it bequeath form prohibited non-inspect work for upside audited account customers, a ill-use that bequeath baseball swing fees o'er sentence.

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

Non-audit oeuvre that affects audits would cover.

KPMG audits 91 of the transcend 350 firms, earning 198 jillion pounds in scrutinise and 79 zillion pounds in non-scrutinise fees, figures from the Financial Reportage Council present.

Lawmakers lack auditors to piece away to a greater extent understandably a company's prospects as a exit headache.

Michael aforesaid KPMG would assay to take all FTSE350 firms take "graduated findings", allowing the hearer to hyperkinetic syndrome More comments roughly 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 due to terminated a fast-chase after revue of Britain's scrutinize sphere by the final stage of the year. This was prompted by lawmakers looking at into the break up of twist keep company Carillion, which KPMG audited, and failures ilk retail merchant BHS.

The watchdog could expect for particular undertakings, such as constrictive the numerate of FTSE350 clients, or advertise forrader with an in-profundity probe if it mat more than radical sign solutions were required.

Deloitte, PwC and Nomor Cantik EY had no immediate remark on whether they would mirror KPMG's conclusion on UK non-audit work on.

(Coverage by Huw Jones Editing by Black lovage Smith)