Whilst attention is spent on closing the loopholes in the tax regime which big business will take advantage of I don't have a problem with the collection of tax from the nation I have a problem how this is been wasted and spent by government. Sadly every institution they have taken over has failed miserably. In a first world country like Japan about 3% of the population are in the public servant domaine. In South Africa this is at least 45%
Thank you A Thank you it's about time that these big auditing firms were exposed in the limelight. They sign off financials as long as they can keep billing
No major corporate crime can be successfully executed without the involvement of Auditors and/or lawyers...go figure🤮🤮🤮 The world is in bad shape when it comes to ethical behavior 🤷♂️
Well a good start would be to disallow Auditors from acting as business advisors and from setting up ostensibly outside companies acting as Consultants.
As a member of the public, our interests are the last thing that these large corporate firms are thinking about. As one auditing firm after the next are being caught doing unethical even criminal stuff, in this case involving PWC, this particular episode involves years and many partners who themselves all have staff under their control all doing the BAD. ..........how much other BAD have these companies got away with, and who is auditing them? That being said, if we the public really think about it, a "Government" is complaining and shouting fowl........and we the public need to believe that this is also been done in the interest of the public. REALLY? One would have to consider that some politicians may have been left out the loop, and this is why there is suddenly this "explosive expose"..............because seriously, seriously............how much more B.S. is going on that remains unmentioned.
Here's something. Look at Silicon Valley Banks annual report. There was an unrealized loss of $15 billion on a portfolio of interesting bearing instruments alone. The equity was $16 billion. The auditors were paid $11 million for that Stirling effort. Go figure.
Imagine if that happened when you asked a reputable expert for advice on your business. One of the biggest assurance companies, trusted for independent advice, misuses confidential secrets from one client to devise schemes to counter the advice they gave you and benefit clients with opposing interests. Not just one bad apple when you see emails.
The statutory obligation for listed companies to have their accounts audited, coupled with a similar requirement by the credit departments of banks, has created a guaranteed source of income for these big auditing firms. Sheltered employment, no less. Partners of auditing companies have gotten lazy, arrogant and greedy. An example needs to be made of those who step out of line and who pay lip service to their code of ethics.
PWC Australia's audit license for both tax and financial accounts must be revoked for at least 3 years for breach of professional ethics (and possibly criminal behaviours) and undermining public confidence in the auditing profession. The breach is systemic when the firm's partners were knowledgable and involved in the ethical and criminal breach.
The auditors are now crying crocodile tears only because they were caught. This unethical behavior is quite common place. There is far less honesty than the public imagine in these firms. The behaviour will not stop but they will tighten up internally to prevent such leaks in future.
And "tightening up" will only make it more difficult for small business to operate with their auditors. And check the contract fine-print and audit disclaimers your auditor wants you to sign off on.
Where is the ATO accountability in this saga . They should have known at the earliest when multinationals were challenging the system. In a way they were not supposed to do - at that point the ato should have gone to the attorney general to canvas for the parliament to legislate to close the loop holes . My observation is that the Ato needs to return to the office and get back in charge of the agency . It just seems the ATO go from one scandal to the next Patego to the other one named after a Russian volcano.
This is serious unethical behaviour with some elements of criminality, but Peter-John Collins only receives a 2-year ban!!! Considering PWC and its partners made money out of this breach of trust by the senior partner in PWC, the 2-year ban is just a slap on the wrist. It appears there was clear intent by Peter-John Collins as he allegedly shared this confidential tax information with his 53 partners in a scheme of generating more revenue for themselves. While these companies may have benefited from the insider information knowingly or unknowingly this may get all those companies involved (clients of PWC) into trouble with their boards and shareholders. These companies may have used this information to avoid paying more taxes if they have not evaded Australian tax laws as it is not clear in the report. These are the very same accountants or professionals who teach us about “the agency theory, which posits that those who are tasked with running the organizations should do so in the best interest of the organization and not in their self-interests”. The accountants, at least some of them, do not practice what they preach, unfortunately. Because of alleged agency practices, PWC may suffer reputational damage with the potential fines being imposed on them. This is just the tip of the iceberg when it comes to the influence and lobbying by accounting firms on matters, they are supposed to be neutral on. The whole system must be overhauled as numerous conflicts of interest exist between the regulators and accountants making it prone to breaches like in this reported case. You cannot be a player and a referee in a game. Because accounting as a discipline is not static, the development of accounting should consider these scandals which bring the accounting profession into disrepute. ESG reporting is another area that needs to be thoroughly re-examined if we are serious about the environmental impact of reporting companies to avoid greenwashing practices.
Classic case of a bad apple infecting the whole bunch. Notice how quickly this guy scarpered. Leaving PWC shouldn’t make him less accountable: nab him, gaol him and make an example of this turkey with urgent immediacy.
Nothing of note will happen A few people will be thrown under the bus The problem is that tax codes are to complex and we should just have one transactional tax and tax consultants would not have a job
Accountants are like the scorers in cricket; they watch the game and keep the score, which is where they should stay. Ever seen what happens when a scorer has to step in and play when a cricketer is injured - disaster. Accountants like to think that they are businessmen and wet dream being "consultants"; definition of consultant: Cons you out of your money and insults your intelligence.
Notice how they are playing the man and not the company? I mean any of those same brands could do the samething tomorrow, they all go to the same weekend soire and weekday conferences. Hasn't anyone watched Big Short?
Could this indicate the fabric of highly centralised world financial systems is simply unraveling. Human nature seems to be the “weak link” in the chain .. be it block or supply or whatever. Thank you Alec Hogg. 🌹
Am I correct then, to believe then that of the Big Four (Deloitte, KPMG, PWC and Ernst & Young) only Ernst & Young are (relatively) untainted? wow... when the bar is set so low... they must just have been doing what they were supposed to be doing, to make it to the top of the class!
Alex, you can't expect the SA branch to immediately know how deep they are in it themselves. First ask if they are implicated, a simple yes or no that can be tested. If they are guilty, don't think they will just want to unburden themselves in one go but if not receiving an adamant no, there is your answer...
Difficult to comprehend exactly how this effects government. Most probably giving advice to clients on how to beat the tax system legally using inside and confidential information? I don't know. But there is obviously one motive which is common ground and that is greed.
The Auditing profession has become a fees driven joke. I recently retired from 40+ years in Banking - and the noticeable decline and quality of Annual Financial Statements - reviewed or audited - has been shockingly noticeable. The industry has become a "game" of beating the legislation and tax laws - and asking a tax deductible fee for that. PWC (and the other 3) all base their business on trust - but you cannot have a foundation of trust when the mighty buck is your only goal. The Companies Act in SA has made many in the auditing profession leave because of less audits required. And when audits are done - are they stil independent?
Why was the advice given by PWC to the Australian Government on how to close the tax loops not a breach of the confidential relationship PWC had with it’s international clients? The government had no problem with that breach. Both the Government and the clients rely on the advisor’s expertise which is generated by the work he/she does for various clients, including government.
The owner of a large FMCG company advised me, a young shareholder, to never appoint an auditor as the CEO of a company. They will f@%# it up and steal it blind.
PWC SA seemingly similar to the anc...saying one thing, doing just the opposite?? In 50yrs time the world will know the true involvement of commercial banks, the reserve bank, sars, national treasury and so-called auditing firms, in the downfall of SA.
These Audit firms are right at the centre of the Securitisation Fraud by banks...maybe a podcast can help explain this complex FRAUD!!! They are all in this together
'Building their brand'. Some dissonance between marketing hype and actual workings. I still have unanswered questions about the objectives, scope and depth and competency of audits for listed companies, that has allowed so many shareholders to be burnt where 'creative' accounting practices not uncovered by auditors; think Tongaat, EOH, Steinhoff etc.. audits too superficial, inadequate proficiency in analysis of oprations & finances.
Once regulatory boards/firms are profit driven, that’s it, they open themselves up to all the “at any cost” bs involved in making profits….Audit firms have lost ALL credibility
PwC have lost any credibility and expecting that trust will be restored with a few words of contrition is risible. Their deceit has been a betrayal of every Australian taxpayer and to have them expect to continue to receive income for advice is clearly ridiculous. Their product, their reason for being is honourable behaviour and trust. Well the wheels have fallen off that particular vehicle and I'd suggest they try operating in a different industry. Perhaps fish markets, where the stink is less unbearable.
Jail time is the only answer to this disgraceful behaviour.
Whilst attention is spent on closing the loopholes in the tax regime which big business will take advantage of I don't have a problem with the collection of tax from the nation I have a problem how this is been wasted and spent by government. Sadly every institution they have taken over has failed miserably. In a first world country like Japan about 3% of the population are in the public servant domaine. In South Africa this is at least 45%
Thank you A
Thank you it's about time that these big auditing firms were exposed in the limelight. They sign off financials as long as they can keep billing
No major corporate crime can be successfully executed without the involvement of Auditors and/or lawyers...go figure🤮🤮🤮
The world is in bad shape when it comes to ethical behavior 🤷♂️
All auditors are conflicted, but when there's money involved ... guess what wins
@@kienhwengtai8113 greed, envy, materialism, conspicuous consumption and consumerism ‼
Well a good start would be to disallow Auditors from acting as business advisors and from setting up ostensibly outside companies acting as Consultants.
isn't this exactly the same thing that happened with Enron, and yet NOTHING changed? same will happen here ...nothing will ever change
The 'big four' have had far too much power for far too long.
Bureaucrats in Australia are trying to create a smokescreen of sorts to protect and limit the damage to PWC and themselves!
As a member of the public, our interests are the last thing that these large corporate firms are thinking about. As one auditing firm after the next are being caught doing unethical even criminal stuff, in this case involving PWC, this particular episode involves years and many partners who themselves all have staff under their control all doing the BAD. ..........how much other BAD have these companies got away with, and who is auditing them? That being said, if we the public really think about it, a "Government" is complaining and shouting fowl........and we the public need to believe that this is also been done in the interest of the public. REALLY? One would have to consider that some politicians may have been left out the loop, and this is why there is suddenly this "explosive expose"..............because seriously, seriously............how much more B.S. is going on that remains unmentioned.
Here's something. Look at Silicon Valley Banks annual report. There was an unrealized loss of $15 billion on a portfolio of interesting bearing instruments alone. The equity was $16 billion. The auditors were paid $11 million for that Stirling effort. Go figure.
I experienced blatant dishonesty at the hands of PWC happy to share details
Imagine if that happened when you asked a reputable expert for advice on your business. One of the biggest assurance companies, trusted for independent advice, misuses confidential secrets from one client to devise schemes to counter the advice they gave you and benefit clients with opposing interests. Not just one bad apple when you see emails.
Very understated comment ☝️
A good start would be to go after the clients of PWC that were advantaged by that inside information. If PWC goes under as a result, so be it.
The statutory obligation for listed companies to have their accounts audited, coupled with a similar requirement by the credit departments of banks, has created a guaranteed source of income for these big auditing firms. Sheltered employment, no less. Partners of auditing companies have gotten lazy, arrogant and greedy. An example needs to be made of those who step out of line and who pay lip service to their code of ethics.
PWC Australia's audit license for both tax and financial accounts must be revoked for at least 3 years for breach of professional ethics (and possibly criminal behaviours) and undermining public confidence in the auditing profession. The breach is systemic when the firm's partners were knowledgable and involved in the ethical and criminal breach.
Highly paid crooks.
they are not COMPANIES - they are partnerships!!! PWC was the main auditor for the maxwell group - say no more!!!
There should be a special class of offence for these guys.
they usually dont get jail
Sad position we find ourselves in these days, Trust just went out the window 😢
The auditors are now crying crocodile tears only because they were caught. This unethical behavior is quite common place. There is far less honesty than the public imagine in these firms. The behaviour will not stop but they will tighten up internally to prevent such leaks in future.
And "tightening up" will only make it more difficult for small business to operate with their auditors.
And check the contract fine-print and audit disclaimers your auditor wants you to sign off on.
Rules for Thee but not for Me!!!!
Where is the ATO accountability in this saga . They should have known at the earliest when multinationals were challenging the system. In a way they were not supposed to do - at that point the ato should have gone to the attorney general to canvas for the parliament to legislate to close the loop holes . My observation is that the Ato needs to return to the office and get back in charge of the agency . It just seems the ATO go from one scandal to the next Patego to the other one named after a Russian volcano.
Who audits the auditors?
This is serious unethical behaviour with some elements of criminality, but Peter-John Collins only receives a 2-year ban!!! Considering PWC and its partners made money out of this breach of trust by the senior partner in PWC, the 2-year ban is just a slap on the wrist. It appears there was clear intent by Peter-John Collins as he allegedly shared this confidential tax information with his 53 partners in a scheme of generating more revenue for themselves. While these companies may have benefited from the insider information knowingly or unknowingly this may get all those companies involved (clients of PWC) into trouble with their boards and shareholders. These companies may have used this information to avoid paying more taxes if they have not evaded Australian tax laws as it is not clear in the report.
These are the very same accountants or professionals who teach us about “the agency theory, which posits that those who are tasked with running the organizations should do so in the best interest of the organization and not in their self-interests”. The accountants, at least some of them, do not practice what they preach, unfortunately. Because of alleged agency practices, PWC may suffer reputational damage with the potential fines being imposed on them.
This is just the tip of the iceberg when it comes to the influence and lobbying by accounting firms on matters, they are supposed to be neutral on. The whole system must be overhauled as numerous conflicts of interest exist between the regulators and accountants making it prone to breaches like in this reported case. You cannot be a player and a referee in a game. Because accounting as a discipline is not static, the development of accounting should consider these scandals which bring the accounting profession into disrepute. ESG reporting is another area that needs to be thoroughly re-examined if we are serious about the environmental impact of reporting companies to avoid greenwashing practices.
PWC, is that Price Waterhouse Cooper's ?
OMG, this is outrageous. !
Jail term is the best deterrent for the would be perpetrators of this type of crime.
The death penalty, actually....
follow the trail.. where ever there's money to be made, a side hussle will take place, and some bright spark will find it
People are inherently dodgy. That doesn't change because they become a CA or when they get their first expensive suit.
It took the ATO 3 year to find theses loopholes - were they asleep at the wheel - working from home has been a disaster for the agency
Classic case of a bad apple infecting the whole bunch. Notice how quickly this guy scarpered. Leaving PWC shouldn’t make him less accountable: nab him, gaol him and make an example of this turkey with urgent immediacy.
And yet corporations absolve themselves by insisting corruption is strictly a government only problem.
Nothing of note will happen A few people will be thrown under the bus
The problem is that tax codes are to complex and we should just have one transactional tax and tax consultants would not have a job
Thank you
Accountants are like the scorers in cricket; they watch the game and keep the score, which is where they should stay. Ever seen what happens when a scorer has to step in and play when a cricketer is injured - disaster. Accountants like to think that they are businessmen and wet dream being "consultants"; definition of consultant: Cons you out of your money and insults your intelligence.
I’m Australian, this scandal must end in jail time, I will accept nothing less
Run them all through FIRB prior to getting an ABN, ACN, TFN or ASX listing? Then bounce the Visa system off FIRB?
Notice how they are playing the man and not the company? I mean any of those same brands could do the samething tomorrow, they all go to the same weekend soire and weekday conferences. Hasn't anyone watched Big Short?
PWC will still be a preferred consultant to the Australian Government. PWC is a major political donor to both the government and the opposition.
Could this indicate the fabric of highly centralised world financial systems is simply unraveling. Human nature seems to be the “weak link” in the chain .. be it block or supply or whatever. Thank you Alec Hogg. 🌹
Are you able to give a specific example of one the "secrets" made public?
Finally Explores - audited countries such as USA, Canada, UK, European, Switzerland, Norway, Sweden etc.....
Am I correct then, to believe then that of the Big Four (Deloitte, KPMG, PWC and Ernst & Young) only Ernst & Young are (relatively) untainted?
wow... when the bar is set so low... they must just have been doing what they were supposed to be doing, to make it to the top of the class!
Alex, you can't expect the SA branch to immediately know how deep they are in it themselves. First ask if they are implicated, a simple yes or no that can be tested.
If they are guilty, don't think they will just want to unburden themselves in one go but if not receiving an adamant no, there is your answer...
Oh so they have skelms in Australia 😂😂. I thought we were alone.
My guess is that it not limited to it business in Australia that this is common practice in all countries PWC operates in.
7:34
😢 Aww, gorsh - my heart feels so warm I mightn't need a coat if the morning comes in frosty. 😢
Difficult to comprehend exactly how this effects government. Most probably giving advice to clients on how to beat the tax system legally using inside and confidential information? I don't know. But there is obviously one motive which is common ground and that is greed.
Is PWC too big to be accountable???
Not surprised at all.
The Auditing profession has become a fees driven joke. I recently retired from 40+ years in Banking - and the noticeable decline and quality of Annual Financial Statements - reviewed or audited - has been shockingly noticeable. The industry has become a "game" of beating the legislation and tax laws - and asking a tax deductible fee for that. PWC (and the other 3) all base their business on trust - but you cannot have a foundation of trust when the mighty buck is your only goal. The Companies Act in SA has made many in the auditing profession leave because of less audits required. And when audits are done - are they stil independent?
Why was the advice given by PWC to the Australian Government on how to close the tax loops not a breach of the confidential relationship PWC had with it’s international clients? The government had no problem with that breach. Both the Government and the clients rely on the advisor’s expertise which is generated by the work he/she does for various clients, including government.
what a strange item to post on the day that NVDIA went ballastic - perhaps mr hogg didn't pick nvdia as a share to hold!!
Guaranteed there's a few Saffers in that 53.
The owner of a large FMCG company advised me, a young shareholder, to never appoint an auditor as the CEO of a company. They will f@%# it up and steal it blind.
Only in Australia?
PWC SA seemingly similar to the anc...saying one thing, doing just the opposite?? In 50yrs time the world will know the true involvement of commercial banks, the reserve bank, sars, national treasury and so-called auditing firms, in the downfall of SA.
Spies everywhere pwc are working for both so
The Goons quote: ..for I am an accountant and too boring to be of consequence...well they have certainly blown that mantra!😂
These Audit firms are right at the centre of the Securitisation Fraud by banks...maybe a podcast can help explain this complex FRAUD!!! They are all in this together
Never trust an accountant…
'Building their brand'. Some dissonance between marketing hype and actual workings.
I still have unanswered questions about the objectives, scope and depth and competency of audits for listed companies, that has allowed so many shareholders to be burnt where 'creative' accounting practices not uncovered by auditors; think Tongaat, EOH, Steinhoff etc.. audits too superficial, inadequate proficiency in analysis of oprations & finances.
Once regulatory boards/firms are profit driven, that’s it, they open themselves up to all the “at any cost” bs involved in making profits….Audit firms have lost ALL credibility
crooks in suits
Yeah.
Trust me I am a 2nd hand car salesman.........😂
Wonder where they got the money to build the Burj Khalifa in waterfall city.
My Australians must care about me to get back all assets is not ok
2 words...... Robin Hood....
Arthur Andersen's Devout Follower
oh weally wot a spinout
It sounds like a job for the hatchet men at Kroll Corp.
Launch a few real life auditors into them.
So still now episode regarding the DA EE amendment lies... 😉
When there is no fear ( respect) for the Lord God Almighty s Commandments, chaos, lawlessness and crime rockets🙏🤔🙏
Crime, anc probably taking notes
No, not taking notes. They've always been in bed with business.
PwC have lost any credibility and expecting that trust will be restored with a few words of contrition is risible. Their deceit has been a betrayal of every Australian taxpayer and to have them expect to continue to receive income for advice is clearly ridiculous. Their product, their reason for being is honourable behaviour and trust. Well the wheels have fallen off that particular vehicle and I'd suggest they try operating in a different industry. Perhaps fish markets, where the stink is less unbearable.