Please ensure Javascript is enabled for purposes of website accessibility
September 22, 2023

Big 4 Firms Shouldn’t Count on Government Help If Things Take a Turn for the Worse

Just something for the ol’ memory bank, Big 4 risk managers.

[Professor] Michael Power from the London School of Economics told the conference that big audit firms were “probably” not “systemic” in nature, in the same way as banks, and that it was unlikely government would step in to save one on the edge of going bust. Power said the lesson from the collapse of Andersen was that the crisis facing the audit market was relatively shortlived when a big firm collapsed, and that a global firm in trouble will break up into its national components to find a solution. He added there was no real evidence of market failure as a result of Andersen’s demise.

Big Four are ‘not too big to fail’ [Accountancy Age]

Just something for the ol’ memory bank, Big 4 risk managers.

[Professor] Michael Power from the London School of Economics told the conference that big audit firms were “probably” not “systemic” in nature, in the same way as banks, and that it was unlikely government would step in to save one on the edge of going bust. Power said the lesson from the collapse of Andersen was that the crisis facing the audit market was relatively shortlived when a big firm collapsed, and that a global firm in trouble will break up into its national components to find a solution. He added there was no real evidence of market failure as a result of Andersen’s demise.

Big Four are ‘not too big to fail’ [Accountancy Age]

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

Woman wearing a dunce cap writing I WILL NOT on a concrete wall

Look What PwC Made the Australian Government Have to Do

The Australian government released exposure draft legislation yesterday in response to “the PwC matter” and the funniest part is the special email they made to receive comments: [email protected]. Not ConsultingReponse or Sept23TaxReform, specifically PwCResponse. In four separate exposure drafts that amend the Taxation Administration Act 1953 (TAA) and/or the Tax Agent Services Act 2009 (TASA), […]

Deloitte University Is Getting Bigger Because God Forbid KPMG Have the Superior Brainwashing Compound

Dallas Morning News reported yesterday that groundbreaking on a “massive expansion” of the already massive Deloitte University campus in Westlake, Texas will begin in January. Deloitte’s been wanting to expand for a while but was waiting on Tarrant County commissioners to approve more than $5 million in tax breaks. “We certainly appreciate the great corporate […]