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Video: Who are the Big Four firms and what do they do?

August 9, 2023

AuthorsLachlan Guselli
360info, Sydney Commissioning Editor

EditorsMichael Joiner
Multimedia Editor, 360info

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00:00:00:08 - 00:00:30:04
Lachlan Guselli
If you go back over government scandals for the past few years, you'll hear this phrase a lot. Big fall firms. The Big four are one of the big four accounting firms. The Big four refers to this group of companies KPMG, Deloitte, PricewaterhouseCoopers and EY, formerly known as Ernst and Young. Collectively, they do nearly all the auditing for the biggest companies in the world, meaning they independently check the accounts for reports that get sent to governments and shareholders.
00:00:30:06 - 00:00:57:12
Lachlan Guselli
Another major part of their business is selling advice to governments on things like tax and policy. And that's where some other major names come into the industry, like McKinsey and Company, Bain and Boston Consulting Group. The use of these companies within our governments is not a scandal. But some people are worried that the conflict of interest from the work they do for corporations and at the same time governments, is a big red flag because these consultants don't just offer advice.
00:00:57:12 - 00:01:26:01
Lachlan Guselli
They also perform roles as contractors, filling up jobs that used to be done by public servants in Australia. Right now senators are asking how PWC were employed to help the government write laws to stop companies avoiding paying tax, but at the same time told those companies how to avoid it. In Canada, consultants McKinsey have been accused of being too close with the government of Justin Trudeau and even of helping to fuel the opioid crisis through its work with OxyContin.
00:01:26:01 - 00:01:52:17
Lachlan Guselli
Producer Purdue Pharma in the U.K. during COVID. The government handed huge sums of money to these firms rather than use their own public servants, which bypasses major rules of accountability. The scandal that keeps appearing reflects a pattern of behaviour that goes back beyond the 1980s. Governments keen to keep costs down end up spending way more on getting external consultants to do the job of public servants.
00:01:52:19 - 00:02:01:22
Lachlan Guselli
The question is does the taxpayer get their money's worth? And if governments and these firms have nothing to hide, why are they so worried about being held accountable?

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Who are these firms that hold so much influence over our governments and how do we keep them accountable?

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Video: Who are the Big Four firms and what do they do?

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