Offices operate in a gray area when it comes to regulations.
There needs to be more oversight of the Big Four advisors. Government contracts with Deloitte, EY, KPMG and PricewaterhouseCoopers must become more transparent. This is supported by a report from the Australian Senate.
- The Australian Senate is considering taking action against the four major companies
- This came in response to the tax scandal caused by PricewaterhouseCoopers last year
- There will be more control over the work that the government outsources to large offices
- Australia is one of the most profitable regions for the Big Four
The reason for the report is the tax scandal in Australia that involved PricewaterhouseCoopers last year. Among the recommendations are a code of conduct for advisers, a central registry of conflict-of-interest violations, and increased scrutiny of contracts by Parliament. Regulations for the companies involved will also become more stringent.
For a long time, the Big Four have had a free hand in Australia, which is considered one of the most profitable consulting markets for large firms. Even last year, a PwC partner misused inside knowledge about tax legislation to sell tax shortcuts to clients. The issue has undermined the Australian government's confidence in major bureaus, according to reports on the site.
However, the feared ban on new government contracts was omitted from the report. The Big Four do not need to standardize their consulting and auditing practices. There will be no restrictions on government spending on consultants.
In response, PwC Australia said it had improved its performance in the areas of governance, culture and accountability.
