theguardian.com
Big Four Accounting Firms Face Reform
A parliamentary inquiry recommends major reforms to address conflicts of interest and unethical practices within Australia's Big Four accounting firms.
English
United Kingdom
Labour MarketUkGovernmentRegulationEthicsReformAccounting
Big Four FirmsPwc AustraliaKpmg AustraliaDeloitteEy OceaniaAlpCoalitionAsic
Deborah O’neillAllan FelsBarbara PocockKaty Gallagher
- What proposals were made but not adopted by the inquiry?
- While the inquiry called for a cap of 400 partners per firm, Senator Pocock pushed for a stricter cap of 100 and a ban on political donations by the Big Four firms, but these were not adopted.
- What concerns did the inquiry raise about the practices of these firms?
- The inquiry uncovered "corporate nightmares" and a "relentless pursuit of profit at any price", leading to calls for stronger regulations and operational separation of large multidisciplinary firms.
- What additional measures did the inquiry recommend to improve the situation?
- The inquiry also recommended tougher penalties for misconduct, resumed random audit inspections, a new government body to register consultants, and a new code to govern their conduct.
- What steps has the Australian government already taken to address the issues?
- The Australian government has already reduced spending on consultants by almost $900 million and plans to bring back another $527 million of "core work" into the public service this year.
- What are the main recommendations of the parliamentary inquiry regarding Big Four firms?
- A parliamentary inquiry recommends banning Big Four firms from providing both audit and consultancy services to the same client and slashing their number of partners by up to 600 to reduce conflicts of interest.