Over a quarter of audits carried out by the major accountancy firms don’t meet the standards of the accountancy regulator.
That shouldn’t be a surprise.
Four firms—KPMG, EY, PwC and Deloitte—audit the accounts of 97 percent of Britain’s largest firms.
These organisations can destroy people’s lives with the stroke of a pen.
Accountants are not dispassionate or unbiased. They are rewarded with contracts for other services if they give companies a clean bill of economic health.
KPMG is under investigation for its role in the collapse of outsourcing firm Carillion.
The giant accountants are part of a system that makes obscene wealth for the few.
The Saudi state oil company Saudi Aramco has announced the biggest annual profits ever recorded—£84.7 billion last year.
This concentration of capital makes the potential effects of economic collapse ever greater.
The solution put forward by a committee of MPs is to break up the big firms and remove their auditing function from the rest of their services.
But it’s unlikely that bosses will stand by and allow their cosy deals to be threatened.
Greater regulation is needed.
But the entire capitalist system that rests on the nods, winks and cooked books of accountants needs to be brought down too.