KPMG, EY and Deloitte: We already have the PwC reforms in place
PwC Australia’s big four rivals KPMG, EY and Deloitte say they already have superior governance structures in place and do not need to emulate the sweeping reforms at the embattled firm following its tax leaks scandal.
PwC last week announced it would make big changes to its operations following the scandal, including adding independent members to its governance board, giving that board the power to sack the chief executive, overhauling its risk management systems and fixing its problematic “revenue is king” culture. The firm also undertook to publish audited financial statements from 2025, something not required of private partnerships.
The big four accounting firms have been under the spotlight this year. Fairfax
The tax leaks scandal, revealed by The Australian Financial Review, involved a former partner, Peter Collins, sharing confidential tax information with PwC partners and staff, who then used it to help clients sidestep tax laws he was helping Treasury develop.
KPMG chief executive Andrew Yates said his firm already had many of the proposed new PwC rules and structures in place, including having independent members on its governance board and centralised risk management, and had no immediate plans to publish audited accounts.
“KPMG’s governance model is unique among its peers in Australia,” he said.
“Partners vote for the appointment of our chair and board members. The chair and board appoint KPMG’s CEO and also approve appointments to the national executive committee.
KPMG Australia CEO Andrew Yates. Alex Ellinghausen
“KPMG has had independent directors on our board since 2017, with our partnership agreement allowing for up to three independent board members. Currently, there are two independent directors on
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