Slide 1: The big 5 4 Accounting firms
True but amazing facts about them, not known to many, perhaps
you!
Slide 2: Known as the big 4 Accounting firms, they are :
•KPMG •Pricewaterhouse Coopers •Delloite •Ernst & Young (Arthur Anderson which made it the big 5 is now in archives)
Slide 3: Of course they set the global standards for transparency in business. But who is their owner ?
Shhhhh……. It is well-guarded secret.
Slide 4: Even though present in over 120 countries, for obvious reasons each one of them is head quartered in a Tax Haven.
If you enquire any details about these firms in a tax haven like Panama, you may end up spending the next 2 years in jail.
Understand how secret the ownership is!
Slide 5: They have paid billions of dollars as fines in the US alone to the SEC. In UK they are being subject to investigations under the Fair Trade Practices Act. They are the subject of cartoons in the Western press and lampooned by the media
Slide 6: Their credentials include *
* Please refer to our White Paper on the
Big 4 Accounting Firms for complete details. This will be released shortly
Slide 7: In case of PWC
Clients
Micro Strategy Home State Holding Robert Maxwell BCCI Anicom
Fine Paid
55 Mn USD 100 Mn USD 1.2 Mn GBP Undecided 21.5 Mn USD
Source
US News www.insure.com ANP Ltd. ANP Ltd. ET WSJ
Accused of compromising on 2.5 Mn USD independence in 70 Companies
Slide 8: In case of KPMG
Clients Power screen Xerox Pie Mutual Rite Aid Oxford Health Jinzhou Port company Fine Paid 275,000 GBP Undecided 9.9 Mn USD 125 Mn USD 75 Mn USD Undecided Source BBC News Reuters, SEC www.insure.com Accounting Web Accounting Web Accounting Web
Slide 9: In case of E&Y
Clients
Cendant FDIC AOL Time Warner Savings & Loans BAAN CO Bank of Cantonale Peoplesoft Case
Fine Paid
335 Mn USD 548 Mn USD Undecided 400 Mn USD 400,000 USD 2.2 Bn USD Undecided
Source
AP & NYLJ Accountanyage.com Washington post & Accounting Web LA Times SEC Accounting Web NY Times
Slide 10: In case of Delloite
Clients Adelphia Barrings Royal Ahold Kentucky Life New Tel Fine Paid Undecided Undecided Undecided 23 Mn USD Undecided Source Business Line Observer Accounting Web Accounting Web Accounting web
Slide 11: They have been found to be innovative in
•Booking bogus sales •Capitalising revenue expenses •Insider trading & related unethical practices •Not accounting Sales Returns •Inadequate disclosure of off-Balance sheet items •Assisting the management in asset stripping •Failing to record liabilities or suppress liabilities
Well, the list on their accounting “innovation” could go on…That is if you do not reckon shredding of documents as an expert service
Slide 12: It is these ‘credible’ professional outfits that are in India, advising the Government of India on:
• Speed and directions of Reforms • Advisor to the planning commission • Providing expertise to the Disinvestment process • Privatisation & Globalisation • Policies for inviting FDI
Slide 13: So, if you want to innovate your accounts hire these “experts”, They would do a good job for you and of course make a fortune in the bargain.
Slide 14: If you are corporate manager, you may have personally felt bombarded, sullied, trampled over, bullied and even decried at your own office by representatives of the big 4. Simply because they are from the big 4.
Remember, they charge you and you pay even for the time spent on abusing you!
Slide 15: If you are a decision maker you might have noticed subtle hints to influence your decisions.
Hiring the kith and kin of the decision makers is one of their tried and trusted methods
They are experts in the art of making friends and “influencing” people. They are too good at Dollar Diplomacy!
Slide 16: Their ownership is unknown, their competency is suspect & their advice bogus.
Slide 17: Then, why do the financial institutions, banks and the corporates in India keep them as auditors, advisors or consultants?
Slide 18: Why are they allowed to operate in India, and hired and respected by the Government of India?
WHY?
Slide 19: Simply because are not aware about these firms and therefore you are silent. Now that you know, will you do something? Will you forward this mail to everybody you know? Create public awareness.
YOU
Slide 20: Save yourself and the nation from the Big 4!
Prepared in Public Interest by The Chartered Accountants’ Action Committee, Chennai IV floor, Rosy Towers 8, Nungambakkam High Road Chennai 600034 Phone- 044-28272201 Visit us at: www.ca-actioncommittee.org
