Big four accountants KPMG, EY, PwC and Deloitte in firing line over partners’ pay
The big four accountants will face fresh demands to clean up their act after posting bumper profits and paying partners thousands of pounds a day.
KPMG, EY, PwC and Deloitte have been slammed for missing frauds and funding crises at firms whose books they audit.
The four are facing a public inquiry after they were all accused of missing the failure of outsourcer Carillion in January, with mounting calls to break them up.
KPMG, EY, PwC and Deloitte are facing a public inquiry after they were all accused of missing the failure of outsourcer Carillion in January, with mounting calls to break them up
Labour MP Peter Kyle, a member of the Business Select Committee, said: ‘In recent years, the big four have squeezed out competition and started acting more and more like a cartel.
‘The time is ripe for a root and branch rethink of how our big companies are audited.’
Deloitte revealed its 702 equity partners made an average £832,000 of profits each in the year to May 31, the highest pay-out for nine years.
It faces action for failing to spot major problems in the accounts of IT firm Autonomy ahead of a tainted acquisition by rival Hewlett Packard.
Meanwhile EY earned record revenues of £2.4billion in the year to June 2017, their most recent accounts, and raised partner pay by £15,000 to £677,000 each.
PWC – slammed for missing a £263million mistake in Tesco’s profits in 2014 – had recordsales of £3.6billion for the year to June 2017, and paid its partners £652,000.
KPMG – accused of missing scandals at the Co-op Bank and HBOS – paid partners £519,000 each in the year to September 2017.