A question of holding the accountants to account

THESE are tough times for bean-counters. Recent revenue figures for two of the big four accountancy firms show small declines. Their auditing and tax-advice businesses are stagnant. But consulting is buoyant. PWC’s consulting revenues, announced on October 4th, rose 7.9% between 2009 and 2010. Deloitte Touche Tohmatsu’s grew by 14.9%. Ernst & Young’s grew by a more modest 2%, but the trend is clear. For the big four—which also include KPMG—consulting now generates between a sixth and a third of global revenue, and this figure is growing.

Some people find this worrying. In America, accountants are barred from providing most non-audit services to firms they audit. (This rule was introduced after the collapse of Enron, whose auditor, Arthur Andersen, was thought to have gone easy on the crooked energy firm to protect its lucrative business advising it.) In other countries, however, the rules are less strict. …