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Bean Counters: The Triumph of the Accountants and How They Broke Capitalism
'A devastating exposé.' Mail on Sunday
They helped cause the 2008 financial crash.
They created a global tax avoidance industry.
They lurk behind the scenes at every level of government...
The world's 'Big Four' accountancy firms - PwC, Deloitte, Ernst & Young, and KPMG - have become a gilded elite. Up in the high six figures, an average partner salary rivals that of a Premier League footballer. But how has the seemingly humdrum profession of accountancy got to this level? And what is the price we pay for their excesses?
Leading investigative journalist Richard Brooks charts the profession's rise to global influence and offers a gripping exposé of the accountancy industry. From underpinning global tax avoidance to corrupting world football, Bean Counters reveals how the accountants have used their central role in the economy to sell management consultancy services that send billions in fees its way. A compelling history informed by numerous insider interviews, this is essential reading for anyone interested in how our economy works and the future of accountancy.
They helped cause the 2008 financial crash.
They created a global tax avoidance industry.
They lurk behind the scenes at every level of government...
The world's 'Big Four' accountancy firms - PwC, Deloitte, Ernst & Young, and KPMG - have become a gilded elite. Up in the high six figures, an average partner salary rivals that of a Premier League footballer. But how has the seemingly humdrum profession of accountancy got to this level? And what is the price we pay for their excesses?
Leading investigative journalist Richard Brooks charts the profession's rise to global influence and offers a gripping exposé of the accountancy industry. From underpinning global tax avoidance to corrupting world football, Bean Counters reveals how the accountants have used their central role in the economy to sell management consultancy services that send billions in fees its way. A compelling history informed by numerous insider interviews, this is essential reading for anyone interested in how our economy works and the future of accountancy.
352 pages, Kindle Edition
Published June 7, 2018
About the author
Richard Brooks
150 books23 followersFormer tax-inspector Richard Brooks reports for Private Eye on a range of subjects and has contributed to the Guardian, the BBC, and many other media outlets. With David Craig he was co-author of the bestselling Plundering the Public Sector. In 2008 he was awarded the Paul Foot Award for Investigative Journalism. He lives in Reading.
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Displaying 1 - 30 of 42 reviews
May 23, 2018
Richard has written an entertaining and thorough account of the audit and accounting profession from its inception.
His main concept is that they have become, despite their ethical beginnings, no more than the tools of corrupt companies, too big to fail, with over 70% of their businesses in consulting, with huge income from tax avoidance and the use of tax havens, promoting schemes like PFI, using accounting rules to the limit and beyond and placating those who given them their income so that they do not lose business.
This is an excoriating analysis by a former taxman, turned Private Eye journalist who has researched his story well, understands the mentality of the accountant and the squeamishness of those who could make the problem better but fail to do so - i.e. those in government, those who are meant to oversee the profession, those in leading positions in the profession.
No book can detail every situation or every cause and there are a few areas that are omitted: one is the fact that many accountants are employed outside of the profession, working in business and other sectors. An understanding of their position, how they interact with those in audit firms and whether there is a different mentality would have been interesting. The second is how the profession, which includes the audit firms but is not limited to them, tries to oversee itself through its rule-making (which is commented on in brief) and ethically (through IESBA, for example, which is not mentioned).
The book focuses on the Big 4 as they are now and shows clearly that the world is no longer safe from fraud, tax evasion, false accounting, public funding expropriation by companies relying on public sector naivety and any other madcap schemes because we cannot rely on external auditors. Richard provides some guides to resolve this but this will now need huge governmental commitment against the likely and continuous lobbying that the Big 4 will throw against any changes.
His main concept is that they have become, despite their ethical beginnings, no more than the tools of corrupt companies, too big to fail, with over 70% of their businesses in consulting, with huge income from tax avoidance and the use of tax havens, promoting schemes like PFI, using accounting rules to the limit and beyond and placating those who given them their income so that they do not lose business.
This is an excoriating analysis by a former taxman, turned Private Eye journalist who has researched his story well, understands the mentality of the accountant and the squeamishness of those who could make the problem better but fail to do so - i.e. those in government, those who are meant to oversee the profession, those in leading positions in the profession.
No book can detail every situation or every cause and there are a few areas that are omitted: one is the fact that many accountants are employed outside of the profession, working in business and other sectors. An understanding of their position, how they interact with those in audit firms and whether there is a different mentality would have been interesting. The second is how the profession, which includes the audit firms but is not limited to them, tries to oversee itself through its rule-making (which is commented on in brief) and ethically (through IESBA, for example, which is not mentioned).
The book focuses on the Big 4 as they are now and shows clearly that the world is no longer safe from fraud, tax evasion, false accounting, public funding expropriation by companies relying on public sector naivety and any other madcap schemes because we cannot rely on external auditors. Richard provides some guides to resolve this but this will now need huge governmental commitment against the likely and continuous lobbying that the Big 4 will throw against any changes.
April 4, 2021
A thoroughly researched yet depressing read. I need a happy book to counter its effect.
December 19, 2023
Liked this book on the history of accounting and the recent problems in the field
January 15, 2020
Great piece of financial journalism - if you liked the movie Enron: The Smartest Guys in the Room, the Netflix series Dirty Money, or Last Week Tonight - then this book will be right up your alley.
It goes through the history of the (today) Big Four accountancy firms and describes how their original audit and scrutiny focus has been eroded by the ever-growing demands of their consulting arms. There are discussions of specific scandals from a range of countries covering all members of the Big Four - with just the right level of detail; no example ever overstays its welcome.
The only downside is the unremittingly negative tone of the book: while perhaps warranted, it gets tough to swallow so much criticism after a while and each scandal and outrageous conflict of interest described - one after the other - slightly lessens the impact. I’m not sure how this could be remedied but I couldn’t shake the feeling that the author’s clear axe to grind perhaps led to a slightly exaggerated view of the overall failings of the audit industry, making it seem like everything they did was rotten to the core.
But this is a small comment in what was a very well-written and illuminating look at the consulting-audit conflict at the heart of modern ‘professional services’ firms.
It goes through the history of the (today) Big Four accountancy firms and describes how their original audit and scrutiny focus has been eroded by the ever-growing demands of their consulting arms. There are discussions of specific scandals from a range of countries covering all members of the Big Four - with just the right level of detail; no example ever overstays its welcome.
The only downside is the unremittingly negative tone of the book: while perhaps warranted, it gets tough to swallow so much criticism after a while and each scandal and outrageous conflict of interest described - one after the other - slightly lessens the impact. I’m not sure how this could be remedied but I couldn’t shake the feeling that the author’s clear axe to grind perhaps led to a slightly exaggerated view of the overall failings of the audit industry, making it seem like everything they did was rotten to the core.
But this is a small comment in what was a very well-written and illuminating look at the consulting-audit conflict at the heart of modern ‘professional services’ firms.
July 24, 2020
For a newcomer, probably the easiest wat to understand the market failings from the current structure of the global accountancy market. Over-zealous at points and only puts one side of the story across. However, he is trying to argue a certain case, with their being no expectation from a reader of impartiality.
March 1, 2021
Although I disagree with the thesis that accountants 'broke' capitalism (an inherently deeply flawed economic system), this book offers detailed accounts of the corruption and systemic abuses that characterise the Big Four.
August 9, 2019
Ok
With a hammer everything is a nail. Applied the lens of poor accounting too broadly. However, the concept of good governance embedded in the market is interesting.
With a hammer everything is a nail. Applied the lens of poor accounting too broadly. However, the concept of good governance embedded in the market is interesting.
April 5, 2026
Conflict of interest, warped incentives, ambition vs greed, are the themes running through the book. A multitude of mostly UK audit & accounting firm scandals are covered and a bleak picture is painted of the current market structure.
A darker turn is then taken for the chapters covering the aiding and abetting of corruption. In some chapters there is though a skipping of the other factors at play, and overfocus on accountants as facilitators rather than holding company directors / Execs under the microscope.
It would also have been interesting to cover more on what should be done. The US has the tight SOX regulations, yet has achieved sustained high growth levels relative to the UK. It would be interesting to explore ideas and a vision here.
A darker turn is then taken for the chapters covering the aiding and abetting of corruption. In some chapters there is though a skipping of the other factors at play, and overfocus on accountants as facilitators rather than holding company directors / Execs under the microscope.
It would also have been interesting to cover more on what should be done. The US has the tight SOX regulations, yet has achieved sustained high growth levels relative to the UK. It would be interesting to explore ideas and a vision here.
January 14, 2025
"Our experts described you as an appallingly dull fellow, unimaginative, timid, lacking in initiative, spineless, easily dominated, no sense of humour, tedious company, and irredeemably drab and awful. And, whereas in most professions these would be considerable drawbacks, in chartered accountancy they're positive boon."
Those are the words from a Monty Python's Flying Circus sketch aired in 1969, in which a vocational guidance counsellor, played by John Cleese tried to dissuade his client (Michael Palin) from switching career to lion taming. From the sketch, we could see that the job of accountancy had such a dim image in British Society at that time. However, as time would show, people of my generation are competing to be employed in one of the Accounting Firms, now commonly, collectively known as the Big Four, consisted of PricewaterhouseCoopers (PWC), Ernst & Young (EY), KPMG, and Deloitte. The Big Four, the author asserts is one of the main actors of some economic catastrophes in late 20th to early 21st century, and it is described quite clearly throughout the book.
However, the author began his explanation by explaining the history of the practice of accountancy itself, from the early medieval times of Italian city states of Genoa, Florence and Milan, when double-entry book keeping method was invented. Many of today's accounting firms found its roots in 19th century, when South Sea Company economic bubble in Britain burst and plunged the whole country into recession. Seeking to serve as a watchdog, The accountant firms set out to point the irregularities within companies' transactions, thus keeping the economy accountable to public. However, as time goes on and the economy went on, the focus of the accountancy gradually shifted, being replaced by consultancy, in which the firms consulted its clients to walk the fine grey line, doing practices that, while legal, were unethical, and even many of them willingly participated in criminal activities, facilitating by giving clean audit rating, while mostly escaping the penalties quite lightly.
In the end, the accountancy, and the accountant profession is a noble one indeed. However, as the book shows, the accountants are being pushed aside, mostly by profit-seeking motives, which the greener pasture of consultancy excels at. Rather than watching over and pointing out financial irregularities from its clients books, The Big Four willingly 'advised' their clients on how to avoid taxes altogether. The senior partners of the Firms mingled freely with CEOs, creating potential for conflicts of interest between the Accounting Firms and their clients. After reading the book, you should start hating more on the consultants.
Those are the words from a Monty Python's Flying Circus sketch aired in 1969, in which a vocational guidance counsellor, played by John Cleese tried to dissuade his client (Michael Palin) from switching career to lion taming. From the sketch, we could see that the job of accountancy had such a dim image in British Society at that time. However, as time would show, people of my generation are competing to be employed in one of the Accounting Firms, now commonly, collectively known as the Big Four, consisted of PricewaterhouseCoopers (PWC), Ernst & Young (EY), KPMG, and Deloitte. The Big Four, the author asserts is one of the main actors of some economic catastrophes in late 20th to early 21st century, and it is described quite clearly throughout the book.
However, the author began his explanation by explaining the history of the practice of accountancy itself, from the early medieval times of Italian city states of Genoa, Florence and Milan, when double-entry book keeping method was invented. Many of today's accounting firms found its roots in 19th century, when South Sea Company economic bubble in Britain burst and plunged the whole country into recession. Seeking to serve as a watchdog, The accountant firms set out to point the irregularities within companies' transactions, thus keeping the economy accountable to public. However, as time goes on and the economy went on, the focus of the accountancy gradually shifted, being replaced by consultancy, in which the firms consulted its clients to walk the fine grey line, doing practices that, while legal, were unethical, and even many of them willingly participated in criminal activities, facilitating by giving clean audit rating, while mostly escaping the penalties quite lightly.
In the end, the accountancy, and the accountant profession is a noble one indeed. However, as the book shows, the accountants are being pushed aside, mostly by profit-seeking motives, which the greener pasture of consultancy excels at. Rather than watching over and pointing out financial irregularities from its clients books, The Big Four willingly 'advised' their clients on how to avoid taxes altogether. The senior partners of the Firms mingled freely with CEOs, creating potential for conflicts of interest between the Accounting Firms and their clients. After reading the book, you should start hating more on the consultants.
June 10, 2023
After reading this, I shall be blaming the Big Four for everything. Morning traffic? That'll be KPMG. Ran out of soap? Typical Deloitte. It'll be quite nice to have a seemingly omnipresent source of blame.
Top marks for creating an accessible and enjoyable read about accountancy. It's a dry topic; this isn't a dry book. It's well-written, clear, engaging and entertaining. Thoroughly recommend, and don't let the following sentences put you off.
The pinch-of-salt comes with the narrowness of its focus: this is accountancy. The actions of all players are judged only by the accuracy and transparency of their accounts. That's perhaps slightly at odds with the author's underlying moral outrage at those who are twisting the numbers - Sepp Blatter may have been using accountancy tricks to line his own pockets, but Gordon Brown's sleight-of-hand, which meant actual hospitals got built, gets no less condemnation.
The 'for shame!' narrative gives a bit more punch, but lacks the anchoring of the actual case studies. Without a clear One True Accountant to hark back to (although gaw bless him for trying to shoehorn Arthur Andersen into the role - a great candidate in all but the unfortunate legacy of his eponymous company), the moral standards Richard Brooks expects his accountants to live up to are, well, those of Richard Brooks. Not to say they're not well-developed and coherent model standards, but one could hardly call them codified. He's taking accountants to task for acting within the law and in line with reputational risk appetite, which does invite the challenge of, "Wait, what were we supposed to do?"
Top marks for creating an accessible and enjoyable read about accountancy. It's a dry topic; this isn't a dry book. It's well-written, clear, engaging and entertaining. Thoroughly recommend, and don't let the following sentences put you off.
The pinch-of-salt comes with the narrowness of its focus: this is accountancy. The actions of all players are judged only by the accuracy and transparency of their accounts. That's perhaps slightly at odds with the author's underlying moral outrage at those who are twisting the numbers - Sepp Blatter may have been using accountancy tricks to line his own pockets, but Gordon Brown's sleight-of-hand, which meant actual hospitals got built, gets no less condemnation.
The 'for shame!' narrative gives a bit more punch, but lacks the anchoring of the actual case studies. Without a clear One True Accountant to hark back to (although gaw bless him for trying to shoehorn Arthur Andersen into the role - a great candidate in all but the unfortunate legacy of his eponymous company), the moral standards Richard Brooks expects his accountants to live up to are, well, those of Richard Brooks. Not to say they're not well-developed and coherent model standards, but one could hardly call them codified. He's taking accountants to task for acting within the law and in line with reputational risk appetite, which does invite the challenge of, "Wait, what were we supposed to do?"
January 24, 2020
This book gives a thorough analysis on the modern day business model and conflict of interest that lies at the heart of the Big 4 Accounting Firms.
What I enjoyed most about this book was learning about the history of these globally significant firms, which I admit I didn’t know too much about before.
Of course, I knew a bit about these firms - based on what I see in the paper and hear from friends working in the firms - what they do, what kind of projects they fulfill and what clients they work for. However, I knew very little about their founding stories, how their industry was regulated over time and how significant they are on the global business stage. I really enjoyed learning about these topics from the book.
Some key learnings and insights I gained from the book include the following:
- The Big 4 employ over 690,000 people which is more than the six most valuable companies in the world combined (as of 2016 data)
- It is speculated, that if valued, each Big 4 firm would be worth over $10 billion
- Worldwide, the Big 4 make just 39% of their income from auditing and related ‘assurances’ work
- James McKinsey - the Founder of McKinsey & Co. - started his career as an Accountant and started his firm as an accounting firm.
- Various Big 4 Accounting firms have done auditing work for some clients for over 100 years
For anyone interested in business and for anyone interested in the areas of consulting, taxation or international trade - this is a must read.
Very well researched content, a lot of work to pull all this content together - well done to Richard Brooks on such a great read.
What I enjoyed most about this book was learning about the history of these globally significant firms, which I admit I didn’t know too much about before.
Of course, I knew a bit about these firms - based on what I see in the paper and hear from friends working in the firms - what they do, what kind of projects they fulfill and what clients they work for. However, I knew very little about their founding stories, how their industry was regulated over time and how significant they are on the global business stage. I really enjoyed learning about these topics from the book.
Some key learnings and insights I gained from the book include the following:
- The Big 4 employ over 690,000 people which is more than the six most valuable companies in the world combined (as of 2016 data)
- It is speculated, that if valued, each Big 4 firm would be worth over $10 billion
- Worldwide, the Big 4 make just 39% of their income from auditing and related ‘assurances’ work
- James McKinsey - the Founder of McKinsey & Co. - started his career as an Accountant and started his firm as an accounting firm.
- Various Big 4 Accounting firms have done auditing work for some clients for over 100 years
For anyone interested in business and for anyone interested in the areas of consulting, taxation or international trade - this is a must read.
Very well researched content, a lot of work to pull all this content together - well done to Richard Brooks on such a great read.
December 21, 2020
If anyone was to approach me with an interest into the reality of the accounting industry at large, as I was & continue to be, I would without hesitation recommend this book.
Richard Brooks holds no punches & truly gets into the nitty gritty & quite frankly uncomfortable facets of the accounting industry & the large players whom define it.
He does so from a truly global perspective, with an emphasis on the impacts of modern accounting & its effects on Europe & The United Kingdom in particular, this serves the book well as it provides some what of a full circle experience - from noble beginnings to destructive current capabilities.
Admittedly, the book was written during a time of outrageous conduct by accounting, industry & governments, providing ample material to assemble an expose with full force, but no credit should be taken from the author for this superb piece of work.
Richard Brooks holds no punches & truly gets into the nitty gritty & quite frankly uncomfortable facets of the accounting industry & the large players whom define it.
He does so from a truly global perspective, with an emphasis on the impacts of modern accounting & its effects on Europe & The United Kingdom in particular, this serves the book well as it provides some what of a full circle experience - from noble beginnings to destructive current capabilities.
Admittedly, the book was written during a time of outrageous conduct by accounting, industry & governments, providing ample material to assemble an expose with full force, but no credit should be taken from the author for this superb piece of work.
July 25, 2021
Excellent. As someone who can't even do a personal budget without help, I'm as far from the accounting profession as it gets. Yet this was one of the most interesting books I've read in the past 10 years.
Most, if not all of us have been impacted in some way by these gangsters. I'm currently directly dealing with the shocking ineptitude of one of their consultancy services so I can relate.
A fantastic bit of investigative journalism told in beautiful "smartest people in the room" style.
Corruption is systemic, and repercussions are an already factored in cost of doing business that way. It's incredibly depressing as it's still full steam ahead.
Most, if not all of us have been impacted in some way by these gangsters. I'm currently directly dealing with the shocking ineptitude of one of their consultancy services so I can relate.
A fantastic bit of investigative journalism told in beautiful "smartest people in the room" style.
Corruption is systemic, and repercussions are an already factored in cost of doing business that way. It's incredibly depressing as it's still full steam ahead.
July 6, 2019
Decent overview of the accountancy/consulting industry and key companies. It's detailed, with references, and he offers some reasonable solutions. I learned the fundamentals of accountancy and helped me fit in the bigger picture of fraud and finacial crises.
However, a little undermined by some classic journalist/sensationalist jumping to conclusions or conspiracy theorising - assuming that gaps or associations necessitate malintent, rather than just rational choices by the actors at the time (even if dubious/immoral).
However, a little undermined by some classic journalist/sensationalist jumping to conclusions or conspiracy theorising - assuming that gaps or associations necessitate malintent, rather than just rational choices by the actors at the time (even if dubious/immoral).
October 12, 2019
An insightful story of the Big-4 from an investigative journalist but a surprising piece of Western hypocrisy. Time and again, Brooks argues against profit-seeking "auditors" who collude with corrupt enterprises to produce false accounts for clueless investors and lax government.
However, when a government finally stands up and forces PwC to recall its approval of a 10-years-worth set of accounts, Brooks has second thoughts. Suddenly, these corrupt profit-seeking auditors may not have been wrong for 10 years after all. Just because the government in question is Russia.
However, when a government finally stands up and forces PwC to recall its approval of a 10-years-worth set of accounts, Brooks has second thoughts. Suddenly, these corrupt profit-seeking auditors may not have been wrong for 10 years after all. Just because the government in question is Russia.
July 29, 2022
Bean Counters is a ground-breaking exposé of a profession that has lost the plot. Everyone in business and finance should read it.
Impeccably researched and written, Bean Counters chronicles how in their relentless quest for fees and growth the global accountancy firms jettisoned their founders’ values and turned their backs on their primary role of keeping companies and public sector organisations honest.
Brooks not only makes clear that the beancounters' abdication of their moral duty is having devastating consequences for capitalism, but also that reform is long overdue.
Impeccably researched and written, Bean Counters chronicles how in their relentless quest for fees and growth the global accountancy firms jettisoned their founders’ values and turned their backs on their primary role of keeping companies and public sector organisations honest.
Brooks not only makes clear that the beancounters' abdication of their moral duty is having devastating consequences for capitalism, but also that reform is long overdue.
March 25, 2024
I listened to the audiobook. The book is well-written and an easy listen. The book seems to be well researched. It give the impression that the Big Four accountancy firms are behind most of the financial disasters that have got from the financial news to the general news in recent decades. Not only have they helped cause them, but often they profit on the way up and down, and in the aftermath. I don't know how fair an account this is but it is credible enough to have increased my cynicism about society; so much in the world is run for the benefit the rich and powerful.
November 26, 2019
Fascinating deep dive into recent auditing scandals and their root causes
A short history of accounting leading to the story of the Big Four auditing firms creation and consolidation, to a deep digging analysis of the recent auditing/accounting scandals. Very good read, that makes a rather dry topic accessible and interesting
A short history of accounting leading to the story of the Big Four auditing firms creation and consolidation, to a deep digging analysis of the recent auditing/accounting scandals. Very good read, that makes a rather dry topic accessible and interesting
April 2, 2020
A hard book to read. It feels like a book filled w rants. Sounds like one of those conspiracy theorist too. Overall a good read regardless but doesn’t exactly give you the full impact of the auditors on the capitalism. More of what the auditors should have done more/intervened to do the right thing but alas they didn’t.
September 7, 2021
Extremely interesting book on auditing - why and how it started, how the big companies were formed, merged and took over the business. It also details how consulting corrupted the ideals and how lack of regulation fuels corruption, tax evasion and harms society. Read it and write to your elected officials to request change...
November 14, 2021
I only skimmed this book but I think it is probably very good. Definitely well written and making an important point about the way the big four have created a oligopoly situation where they create the rules, then charge for checking they are followed all the while marking their own homework.
If I had more time or fewer books to read I would most likely have read it more thoroughly.
If I had more time or fewer books to read I would most likely have read it more thoroughly.
February 10, 2019
Interesting but not all encompassing
Great history of auditing and accountancy. Not as good for professional services. Needs further analysis of how smaller organisations are better and more cost effective at providing a tailored consultancy
Great history of auditing and accountancy. Not as good for professional services. Needs further analysis of how smaller organisations are better and more cost effective at providing a tailored consultancy
August 25, 2019
Not for everyone, can be a little dense at times but a must read for those interested in the evolution of the accounting/auditing industry, the domination of the big 4 and how the quest for ever increasing fee revenue in the industry is delivering poor outcomes for a wide range of stakeholders.
May 5, 2022
An average read. Talks about the intent and history behind setting up of an accountancy firm and how they’ve gone on to build a more lucrative business in consultancy and tax planning. Led by incorrect incentive structure and no accountability whatsoever for the audit done. Under 25% of Top 4/5 accounting firms business comes from audit.
May 2, 2023
annoying, the verbal equivalent of an American nature documentary, all jump cuts and SFX. I actually just wanted to know how normal accountancy works and doesn’t work but he spends most of the book talking about the Big 4 audit consultancies.
July 25, 2023
This was a bit of a slog in places. The history of accountancy forms was interesting as was their role in various crisis but the book at times flows into idealism and felt like the author was preaching a conspiracy.
This entire review has been hidden because of spoilers.
May 23, 2024
Al-Hussaini محاسب قانوني Certified Accountants and Auditors Company is an ayca company that provides accounting, auditing, zakat and tax consultations, and all other services.
February 20, 2025
More than you ever wanted to know about how accountants are asked to do consulting, they don't really bother to do good auditing, because the really good money comes from consulting, and showing companies how to cheat on their taxes.
December 2, 2018
An astonishing insight into the accounting and consulting world.
April 13, 2019
When things look bad and the source is your dear government, what else can you do? Blame anyone.
Displaying 1 - 30 of 42 reviews