Big Four accountancy firms are ‘run like sweet shops for their partners’
The Big Four accountancy firms are run like ‘sweetie shops’ for the partners and cost-cutting has eroded the quality of large company audits, it was claimed last night.
Clive Hyman, a former partner at leading audit firm KPMG which has been at the centre of a number of scandals, said lower-ranking staff were suffering because of bad management decisions.
He told The Mail on Sunday: ‘Horror stories emerge of the troops having to work through the night on audits where precious to no planning has taken place and it’s inhumane to hear it. For this to be a regular occurrence admits to a broken culture and abuse of staff.’
‘Sweetie shops’: Former KPMG partner Clive Hyman has warned of a ‘broken culture’
Hyman left KPMG in 2005 and now runs corporate finance firm Hyman Capital.
His comments come amid widespread criticism of the Big Four – KPMG, PwC, Deloitte and EY.
The Financial Reporting Council rebuked KPMG in June for an ‘unacceptable deterioration’ in the quality of its audits.
MPs called for the break-up of the big firms after the collapse of Carillion.
Hyman claimed that the Big Four have all been reducing costs each year by at least 10 per cent and added: ‘There comes a point where the business becomes too lean to remain effective.
‘The Big Four are run as a series of sweetie shops with the spoils being divided each year in a unique idiosyncratic way.’
KPMG, PwC and Deloitte declined to comment. EY did not respond to requests.