Big four accountants could face partner limits in governance crackdown

Ronald Mizen and Edmund Tadros

Updated May 6, 2024 – 4.22pm, first published at May 5, 2024 – 7.37pm

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The big four accounting firms could be forced to slash partner numbers and incorporate their consulting businesses under a crackdown on governance standards flagged as a possible response to the PwC tax leaks scandal.

In a consultation paper released late on Friday, Treasury also raised concerns about audit and consulting partners sharing profits, which it said risked auditors being incentivised to prioritise client satisfaction over audit quality, potentially undermining market confidence.

correction —

An earlier version of this article should have said there were 16 issues, not 15. Treasury has now corrected its numbering for issues 8 through to 16.

Ronald Mizen is the Financial Review’s political correspondent, reporting from the press gallery at Parliament House, Canberra.

Edmund Tadros leads our coverage of the professional services sector. He is based in our Sydney newsroom.