In recent years, a series of scandals have exposed serious ethical and governance failures in the big four consulting and accounting firms.
These include PwC’s tax leaks scandal in 2023 and KPMG’s audit whistleblowing scandal this year.
” Conflicts of interest are baked into the big four by virtue of their structure, engendering an exploitative and unethical culture,” said Josh Bornstein, Director of Corporate Regulation at The Australia Institute.
“A structural problem demands a structural solution. Breaking up the big four will dramatically reduce the incidence of conflicts of interest and misconduct.”
The submission to Treasury’s inquiry into the regulation of accounting, auditing, and consulting firms in Australia also argues that the big four are poorly regulated and should be governed to the same standard as corporations.
“The big consulting firms look and act like companies, albeit badly behaved companies. It’s time to tax and regulate them like companies”.
” When big business is out of control and causing harm, voters expect their politicians to step in and say enough is enough, not just work around the edges.
“Breaking up the big consulting firms is the only way to restore trust and prevent future scandals.”
