8 Responses

1. Deeply Depressed says:

   August 17 2010 at 11:29 am

   Hi Richard. I made the comment as it is clear to me that the the Big 4 might be looking for payback. I’m not sure I understand your comment “I fear not”?

   I would love to see a spotlight turned on the activities of the Big 4 and the way they influence Government. For example, PwC and KPMG earned £1.1m and £1.7m respectively from the Audit Commission in 2009/2010 (http://www.audit-commission.gov.uk/aboutus/procurement/spendwithsuppliers/spendwithsupplier200910/Pages/Default.aspx). So they get paid to advise on how to run a public service and then get paid again when it’s privatised. It stinks. I believe that auditors have too many vested interests generally and would love to see a more powerful NAO with a much broader remit.
2. Richard Murphy says:

   August 17 2010 at 11:59 am

   @Deeply Depressed

   I have edited to make my meaning clearer

   Wholeheartedly agree with your sentiments
3. Deeply Depressed says:

   August 17 2010 at 12:37 pm

   @Richard Murphy

   Thanks Richard. Whilst it’s a little bit off-topic and an old(ish) report, Prem Sikka nails it in the following:

   http://www.publications.parliament.uk/pa/cm200809/cmselect/cmtreasy/144/144w202.htm

   “Auditing firms are commercial enterprises and cannot afford to alienate their paymasters. The basic auditing model requires one set of business entrepreneurs (auditing firms) to regulate another (company directors). Neither party owes a “duty of care” to any individual shareholder, creditor, employee, bank depositor or borrower. Their success is measured by profits rather than anything they might do for society, regulators or the state.”

   I simply don’t understand this coalition of vested interests.
4. Richard Murphy says:

   August 17 2010 at 1:03 pm

   @Deeply Depressed

   Again, agreed
5. Helen says:

   August 18 2010 at 12:41 pm

   I think you really do! You just do’t want the answer in your head to be true – I’ve had my head in my hands for a while now, horrified at what I’m learning to the point I can barely switch on the TV or radio these days for fear of what bit of nonsense I’m about to hear anounced from up on high. When I do put on the TV, I ten to have it on just to wathc the Trials of Life or Planet Earth DVDs these days. That is my device to keep the depression away.
   @Deeply Depressed
6. infrequentobserver says:

   August 18 2010 at 2:25 pm

   Just to bring some balance to the story, below is a table detailing donations received by the Labour and Lib-Dem Partys from the same audit firms for the same period. It seems all parties benefit from ‘pro bono’ work to some extent. I am not saying I agree with it, just pointing out it isn’t just the Torys that accepted donations. I guess consideration also needs to be given to whether the support was offered by the audit firms (demonstrates leanings by firm toward one party over the other) or asked for by the parties (demonstrates more resources required by one party over the other). The answer to this may inform why the numbers are as they are.

   Sum Donated
   Firm Labour Conservative Lib-Dem
   Deloitte LLP £13,500.00 £323,501.75 £0.00
   Ernst & Young £0.00 £63,989.08 £0.00
   Grant Thornoton £0.00 £15,000.00 £0.00
   KPMG LLP £284,766.00 £435,973.00 £242,587.24
   PWC £184,193.00 £533,063.68 £78,710.00
   Total £468,959.00 £1,371,527.51 £321,297.24
7. Tax Research UK » Who did the Big 4 fund before the general election? says:

   August 19 2010 at 9:01 am

   […] The issue of who the Big 4 did fund before the election seems to have been of some (actually, considerable) interest since the figures for the Tories were posted here. […]
8. Who did the Big 4 fund before the general election? | called2account says:

   August 19 2010 at 9:40 am

   […] The issue of who the Big 4 did fund before the election seems to have been of some (actually, considerable) interest since the figures for the Tories were posted here. […]