The PwC tax leaks scandal should have been a wake-up call for the entire professional services sector. Yet two years on, the KPMG audit debacle has again exposed serious governance and cultural failings in the consultancy sector.The abuse by some PwC tax partners of confidential Australian Taxation Office briefings to court multinational companies, and the misuse by some KPMG audit partners of clients’ confidential financial information to bid for auditing work at rival companies, have trashed the brand of two of the big four professional services firms. The predictable result of these major management and ethical lapses has led to calls for greater regulatory intervention, potentially affecting how these large partnerships, which offer audit, accounting, and management consulting services, operate.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Audit regulatory reset inevitable after the PwC and KPMG scandals
Treasury will now consult on its proposals. Heightened regulation brought upon the sector by bad actors at the two big four firms is the most likely outcome.
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