In the last week we have seen MPs criticise accountancy firms, KPMG, Deloitte, EY and PWC in their first report on the collapse of Carillion, describing the big four as “a cosy club” and calling for the firms to be forcibly broken up. Whilst not suggesting that the firms were to blame for the collapse, it is the level of fees reportedly paid to the firms which caught the MPs attention– £72 million in 10 years.
Perhaps the numbers seem worse in light of findings that suppliers to Carillion often had to wait 120 days for payment or were squeezed on fees by having to accept a discount on their invoices in return for an accelerated payment. EY was singled out in particular for providing advice on deferred payment schemes when payment of their own fees were not deferred. Continue Reading