Big Four accounting firms shut out of Australian rule-making boards
Australia's new External Reporting Authority is hiring board members from outside the Big Four accounting firms. This follows a legal change backed by the Greens.
Australia's accounting rule makers are looking for talent outside the Big Four firms. A law change passed in June restricts KPMG and PwC's role in standard-setting boards.
The Financial Reporting Council has advertised for people to join technical boards under the new External Reporting Australia. This replaces the old Financial Reporting Council, Australian Accounting Standards Board, and Auditing and Assurance Standards Board.
The change came because the Australian Greens insisted on it. It restricts how many people from big accounting firms can take part in setting rules.
The goal is to lower the power of the largest firms over standards they help audit.
- June 2026
- Law changed
- KPMG, PwC Australia
- Firms restricted
- 3 replaced by ERA
- Boards consolidated
Why it mattersWho writes accounting rules affects how companies report their finances and how much review they face. Removing Big Four dominance could change corporate accountability and audit independence.
AustraliaAustralian companies will be audited and report under rules set by people outside the largest accounting firms, potentially changing how financial reporting is regulated and who benefits from standard-setting influence.
✓ Claims checked against the source and corrected before publish. checked 10 d ago
