The Australian government has released an options paper aimed at tightening regulation of accounting, auditing and consulting firms, responding to a fresh scandal involving EY. Two graduate employees of the firm, on secondment at Commonwealth Bank, were sacked after allegedly using the bank's systems to access Prime Minister Anthony Albanese's personal bank account details.
Albanese called the breach “alarming” and said charges laid against the individuals were “appropriate.” He noted the behaviour of some big accounting firms has been “completely unacceptable” and in some cases involved breaches of the law, adding that those responsible “need to be held to account.”
The options paper comes amid ongoing scrutiny of the consulting sector, following earlier controversies involving KPMG. The government has signaled it will continue examining industry practices, with Albanese stating authorities have “cracked down on that” and will pursue further reforms.
The immediate implications for consulting firms operating in Australia include potential tighter compliance requirements and increased legal exposure. The scandal may also erode public trust in the sector, prompting clients to reassess their relationships with major accounting and advisory firms.
Critics, however, argue the options paper lacks specific enforcement mechanisms or a clear timeline for implementation, leaving key regulatory changes open-ended. Industry groups have cautioned against over-regulation that could stifle business activity.