The Australian government is considering breaking up the Big Four accounting firms and bringing them under the corporate regulator’s purview following some high-profile scandals in the sector.

Proposed Reforms

The proposals, outlined in a paper from the Treasury department, also include caps on the size of partnerships to 400 from 1,000. The paper said the recent conduct of the Big Four accounting firms — Deloitte, EY, KPMG and PwC — had exposed gaps in Australia’s regulatory framework.

Assistant Treasurer Daniel Mulino stated that the behavior from some large accounting, auditing, and consulting firms in Australia was not fair and honest, undermining trust in the firms and raising broader questions about the resilience of the frameworks meant to uphold market integrity.

Industry Response

A Deloitte spokesperson welcomed the release of the options paper by Treasury and the opportunity to engage constructively on any measures which strengthen trust in the profession. EY Oceania CEO David Larocca said in a statement that the firm was supportive of many of the options outlined in the paper.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.