Mazars has acquired Deloitte's internal audit business in a move designed to build up its work providing internal audit services to the public sector.

Following the acquisition, 120 specialist staff from Deloitte Public Sector Internal Audit Ltd, which provides internal audit services to local government and health organisations based in London and the South East, will join Mazars.

The move cements the mid-tier firm's intentions of making inroads in the public sector audit services market, following its acquisition last year of the DA Partnership - the planned mutual audit firm comprising former Audit Commission staff, which had also won a contract tendered by the Audit Commission in the last year.

Gareth Davies, Mazars head of public services said: 'This is a strategic growth area for Mazars, and we're committed to maintaining the high standards of client service and technical quality they are used to. I'm very much looking forward to formally bringing everyone on board when the deal completes.'

Mazars won a £5m Audit Commission external audit contract in the north of England last year, and has opened a new office in Durham. The acquisition of the Deloitte business sees the firm move up from sixth to fourth place among the top four firms providing internal audit services to the sector.