The US Big Four have increased the amount they
spend on lobbyists to $9.4m as pressure mounts over the Public
Company Accounting Oversight Board’s (PCAOB) audit reform
proposals.

In the 2011 congressional disclosure reports,
Deloitte spent $3m on lobbyists, followed by PwC with $2.7m, Ernst
& Young $2.2m and KPMG $1.5m, according to news agency
Reuters.

The lobbying budget of the largest US firms
has increased nearly two-fold since records of Big Four lobbying
efforts began in 1999.

The money spent in 2011 is the highest amount
since 2002 when the Enron scandal resulted in the collapse of
accounting firm Arthur Anderson, leading to the creation of
Sarbanes-Oxley Act and the PCAOB.

According to Reuters, a significant
portion of the Big Four money goes towards trying to influence the
audit regulator, which last year launched a consultation on auditor
independence and mandatory audit firm rotation as a way to enhance
independence, objectivity and professional scepticism.

EC lobbying intensifies

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Much like the US, Big Four firms in Europe are
also spending increasing amounts on lobbying against similar
proposals from the European Commission, which are currently being
assessed by the European Parliament in order to water them down
before they become law.

The cost of lobbying in Europe is not
disclosed, however, it is believed there are about 60 European
lobbyists working for PwC alone.

Reuters said other Big Four lobbying
efforts in the US involve topics such as policies that could affect
consulting work the firms do on contract for US agencies, while a
proportion of lobbying money could not be traced to its cause.