The Big Four scandal roulette

Good morning,

It seems the Big Four firms are sitting on a merry-go-round of ‘scandals’, waiting their turn to shine. This time, it was Deloitte Cyprus.

We learned on Monday of a damning report by the Bureau of Investigative Journalism (TBIJ) and BBC Panorama alleging that Deloitte (and its spin-off) falsified paperwork for the sanctioned oligarch Roman Abramovich. 

Abramovich denied any involvement, and Deloitte Cyprus said it acts in compliance with applicable laws.

Not surprisingly, the story spread like wildfire, was covered by multiple news agencies, and became a talking point on social media. 

You can imagine KPMG breathed a slight sigh of relief after facing a flurry of its own headlines in recent months over its big scandal in Australia.

PwC has had its own issues in Saudi Arabia, China… and Australia over the last few years. 

Because of how the Big Four are structured, any issues hit the specific local member firm involved. But you don’t need to be a high-ranking reputation manager to know that a major scandal damages the global reputation.

In other news, the world’s largest law firm by revenue, Kirkland & Ellis, has said it will no longer share its financial figures with AmLaw, the publication known for its legal rankings.

A bold move that its top rival, Latham & Watkins, will undoubtedly be watching closely.

For years, AmLaw has documented Kirkland’s ascent to wearing the crown of the world’s wealthiest law firm. However, in a letter sent last Wednesday, the US heavyweight explained the decision, saying continued public disclosure “could incentivise quantitative metrics over qualitative strengths”.

In the UK, Freshfields stopped voluntarily releasing its headline financial results directly to the media in 2023, but Companies House has the numbers.

The question now is whether this could prompt elite competitors to follow suit, adding another layer of smoke and mirrors to an already guarded industry.

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Have a great Thursday!

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