The argument that the major accounting firms need access to specialised skills within their consulting businesses to deliver quality audits has been questioned at a Senate inquiry.
Claims by big four accounting firms that they need specialised skills in their consulting businesses to deliver quality audits have been questioned after former PwC Australia chief executive Luke Sayers said he tried to sell the firm’s consulting arm during his time as leader.
The firm’s 2019 submission to the audit quality inquiry stated: “PwC Australia does not support operational separation of the big four firms in the Australian market.” Instead, PwC promised it had been evolving its approach to managing conflicts by changing the way audit partners were paid so they were not given incentives to sell non-audit services.
PwC Australia CEO Kevin Burrowes said he had spent years working through such issues while with PwC UK.Mr Burrowes: “I’m trying to explain the merits of a multidisciplinary firm ... our audit teams need access to cyber capability, to real estate people.”