NewsBite

Conflict of interest

January 2024

Spotlight on consultants after big four billing rates leaked

Finance Minister Katy Gallagher declined to reveal which of the 413 firms on the management advisory panel were leaked the highly confidential data of their rivals.

  • Ronald Mizen
Mathias Cormann did “some work” for Luke Sayers after leaving government.

Mathias Cormann did ‘some work’ for ex-PwC boss Luke Sayers

The new revelations follow Luke Sayers admitting that his new firm Sayers Group granted Cormann some shares before he took the OECD job.

  • Hannah Wootton

November 2023

Deloitte is facing allegations of “double handling”.

Deloitte accused of double-dealing Honda sellers

Honda dealers are suing their parent company, and say auditors Deloitte used their confidential accounts data to help the car manufacturer buy them out cheaply.

  • Jessica Sier

September 2023

PwC first floated the idea of all the large accounting firms acting together via an industry group called the Centre for Audit Quality,

PwC to curtail consulting work for US audit clients to reduce conflict risk

The move comes amid a worldwide debate over how to ensure accounting firms remain independent of the companies they audit.

  • Stephen Foley and Michael O’Dwyer

June 2023

PwC will not appear before a committee on integrity in the consulting sector.

PwC won’t appear at crucial upcoming Senate inquiry hearing

The scandal-hit accounting firm is not listed to appear at next week’s Senate committee hearing but the ATO, Treasury and rival KPMG will all face questions.

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May 2023

EY is not fussy in who it will advise on carbon offsets.

EY cashes in on offset conflicts

The big four consulting firm is pushing the carbon credit market to a slew of clients. It is just neglecting to mention many of those offsets are allegedly shams.

  • Hannah Wootton

March 2023

It is now uncertain whether EY’s split will go ahead.

EY global CEO contradicts US leader over plan to split firm

EY’s global chairman told its 13,000 partners they have a “right” to vote on the plan to split the firm, in a memo sent just hours after the US boss declared it “premature” to say if the deal could be salvaged.

  • Stephen Foley and Michael O’Dwyer
Deloitte Global CEO Joe Ucuzoglu outlines why the firm won’t be splitting in an online video.

Deloitte CEO slams EY split and its leaders’ ‘deal fever’

Joe Ucuzoglu says his firm will stay together, and questioned the reasons that EY leaders have extolled to sell its separation plan to partners, staff and clients.

  • Edmund Tadros

EY split on hold for ‘weeks, not months’ amid new doubts over plan

Two senior EY partners said the firm was committed to the split and issues would be “resolved within weeks, not months” to ensure “momentum across the deal”.

  • Edmund Tadros

February 2023

A former US partner says EY ignored its own code of conduct when she was sidelined after refusing to sign off on what she claims were client transactions that violated tax and securities laws. EY denies the claims.

Inside the massive global operation to split EY

More than two dozen separate global teams are working on the complicated, lengthy and risky internal project to separate its auditing and consulting arms.

  • Edmund Tadros

October 2022

A new book recounts shocking behaviour by McKinsey including its role in the US opioid crisis.

The scandals and hypocrisy behind McKinsey’s sterling reputation

A new book shatters the luminous image that has long been attached to the consulting giant.

  • Michael Bobelian

August 2021

Federal Reserve chairman Jerome Powell says he needs to be able to handle criticism and do what is best.

Fed’s stoic Powell prepares for his greatest challenge

The US Federal Reserve chairman appears to be prepared to take a leaf out of Paul Volker’s book and become deeply unpopular by raising interest rates.

  • Matthew Cranston

July 2021

Jailed $60m Ponzi schemer Brad Sherwin.

Ponzi scheme: legal watchdog’s ‘frustrating’ probe

When a $60 million Ponzi scheme unravelled, some victims found their superannuation tied up in property deals. A law firm on the deal had never contacted them.

  • Liam Walsh

February 2021

AMA director Simon Moore is senior partner of private equity firm Colinton Capital, which received $3.15 million in deal fees from AMA.

Smash repairer finessed oversight after related-party deal

Changes were made after AMA Group paid $3.15m to a private equity firm linked to a director.

  • Liam Walsh

January 2020

James Mawhinney stepped down as a director of Australian Business Credit

Mayfair Platinum licence conflicts raise eyebrows

An expert says the structure of controversial investment firms can create traps for unsophisticated investors, no matter how wealthy they are.

  • Jonathan Shapiro and Liam Walsh
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December 2019

Stuart McAuliffe named his funds after pirates.

Takeovers Panel raises conflict concerns with CEO in boardroom

When is it okay for a CEO to stay in the boardroom when other directors chat vote on a deal involving a potential conflict of interest?

  • Liam Walsh
The conflicts of interests at the big four are under a spotlight.

Gatekeepers turned poachers are a danger to audit integrity

The evidence is mounting that the big four are the new vampire squid of corporate Australia.

  • Deborah O'Neill

August 2019

The big four accounting firms are under the spotlight regarding audit independence and conflicts of interest.

ASX200 face 'Enron risk' with non-audit work

About a quarter of all ASX200 companies spend more than 40 per cent of their fees with their auditor on non-audit work, creating concern about the independence of the financial inspection work.

  • Hannah Wootton

Original URL: https://www.afr.com/topic/conflict-of-interest-1mq4