168 files open on big 4 accounting firms

The big four accounting groups are currently the subject of 168 monitoring and inquiry files, with most of those involving the activities of PwC Australia.

The confirmation of the number of files opened against the big four firms has come at the same time as major accounting group, Chartered Accountants ANZ (CA-ANZ) has sought an easing on the prohibition on passing on information relevant to investigations into  professional conduct.

The files have been opened by the Chartered Accountants ANZ Professional Conduct Committee investigation team with CA-ANZ telling the Parliamentary Joint Committee on Corporations and Financial Services that the split of the files is:

PwC Australia 92

KPMG 32

Deloitte 23

EY 21

“As at 25 March 2024 the AU Professional Conduct Committee (PCC) investigation team currently has 168 monitoring and inquiry files open in relation to the big 4, which is approximately 10.5% of all such files and 20 complaints, which is approximately 7.5% of all complaints,” the committee was told.

“A monitoring/inquiry file may be opened in a number of scenarios including where there is a possibility that disciplinary action could be taken against a member, or a cohort of Members. Monitoring files are closed if inquiries do not result in any basis for a formal investigation,” it said.

The CA-ANZ said that its Professional Conduct Committee investors received information from ASIC and sometimes needed the assistance of experts in audit or other regulated functions to properly assess the information.

It said the committee “certainly require the assistance of eternal lawyers for the purposes of prosecuting any subsequent disciplinary action”.

“The prohibition on reasonable limited on-disclosure limits the usefulness of the information for disciplinary purposes. We suggest the insertion of a qualification to section 127(4EA)(a), such as ‘other than a person engaged or appointed by the body or a member of the body to assist with the performance of one of the body’s functions’ (or similar), would assist in this regard,” it said.