While the Big Four accounting firms seem perpetually mired in allegations of botched, biased or influenced audits, such accusations will do little to stop these firms from offering legal services and taking an increasingly larger slice of the pie from law firms, according to analysts and industry observers. Law firm managing partners should take note.
On Tuesday, the Public Company Accounting Oversight Board revealed it had fined Scott Marcello, the sacked former head of Big Four accounting firm KPMG’s U.S. audit business. for failing to reasonably supervise his senior auditors who were scheming to improve KPMG’s audit inspection results. The fine arose from the so-called steal the exam scandal in which KPMG ended up paying the U.S. Securities and Exchange Commission a $50 million settlement.