The Big Four auditing firms work with nearly every single major company on the planet. At the same time, they work extensively with our governments advising them on how to develop laws and policies. If you think that might be a potential conflict of interest, you’re not alone. Who are these firms that hold so much influence over our governments and how do we keep them accountable?
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00:00 If you go back over government scandals for the past few years, you'll hear this phrase a lot.
00:05 The Big Four accounting firms.
00:09 The Big Four refers to this group of companies. KPMG, Deloitte, PricewaterhouseCoopers and EY, formerly known as Ernst & Young.
00:19 Collectively, they do nearly all the auditing for the biggest companies in the world,
00:23 meaning they independently check the accounts for reports that get sent to governments and shareholders.
00:30 Another major part of their business is selling advice to governments on things like tax and policy.
00:35 And that's where some other major names come into the industry, like McKinsey & Company, Bain and Boston Consulting Group.
00:42 The use of these companies within our governments is not a scandal,
00:46 but some people are worried that the conflict of interest from the work they do for corporations
00:51 and at the same time governments is a big red flag.
00:54 Because these consultants don't just offer advice, they also perform roles as contractors,
00:59 filling up jobs that used to be done by public servants.
01:03 In Australia right now, senators are asking how PwC were employed to help the government write laws
01:09 to stop companies avoiding paying tax, but at the same time told those companies how to avoid it.
01:16 In Canada, consultants McKinsey have been accused of being too close with the government of Justin Trudeau
01:21 and even of helping to fuel the opioid crisis through its work with OxyContin producer Purdue Pharma.
01:27 In the UK, during COVID, the government handed huge sums of money to these firms
01:33 rather than use their own public servants, which bypasses major rules of accountability.
01:38 The scandal that keeps appearing reflects a pattern of behaviour that goes back beyond the 1980s.
01:44 Governments keen to keep costs down end up spending way more on getting external consultants
01:50 to do the job of public servants.
01:52 The question is, does the taxpayer get their money's worth?
01:55 And if governments and these firms have nothing to hide,
01:58 why are they so worried about being held accountable?
02:02 you
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