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3 clusters · 7 sources · 14 days · First seen · Last updated

US state attorneys general investigation of accounting firms

Overview

A coalition of 16 state attorneys general, including officials from Nebraska, Florida, Alaska, and Iowa, has launched an investigation into the ‘Big Four’ accounting firms—Deloitte, Ernst & Young (EY), KPMG, and PricewaterhouseCoopers (PwC). The coalition alleges that the firms’ support for international climate initiatives, such as the Task Force on Climate-related Financial Disclosures, may conflict with their professional duties of independence, integrity, and objectivity.

The officials argue that these climate-related disclosure requirements impose burdensome costs on clients, including small businesses and farmers, which are eventually passed on to consumers. They further suggest that undisclosed climate activism could violate state consumer protection laws by making deceptive representations regarding audit independence.

In a formal escalation, the attorneys general issued a warning and a communication containing 38 specific questions demanding accountability. The inquiry focuses on whether the firms’ support for frameworks like the International Sustainability Standards Board (ISSB) and the TCFD creates a conflict of interest by generating new revenue through auditing and consulting services. The officials are questioning whether the firms are acting as ‘independent auditors’ or as ‘decarbonization advocates’ seeking to expand their own markets. Specifically, they are investigating whether the firms used discredited climate scenarios, such as RCP 8.5, to influence audit practices and if they re-evaluated their positions following the retraction of certain scientific papers.

Additionally, the coalition has challenged a climate-attribution report produced by the National Academies of Sciences, Engineering, and Medicine (NASEM), characterizing NASEM’s internal review of its climate work as a ‘sham’ due to potential conflicts of interest.

Entities

Deloitte · KPMG · Ernst & Young · PricewaterhouseCoopers · International Sustainability Standards Board

Claims

What the coverage asserts, and how many sources carry each claim.

Timeline

  1. 5 days ago

    [BUSINESS] 2 sources
    U.S. Attorneys General pressure Big Four firms over climate disclosures

    Attorneys general from 16 U.S. states have warned the Big Four accounting firms that promoting climate disclosure frameworks may create conflicts of interest and violate auditor independence.

  2. 15 days ago

    [POLITICS] 3 sources
    State Attorneys General target Big Four accounting firms and NASEM climate report

    State attorneys general are investigating ‘Big Four’ accounting firms over climate disclosures and alleging that a NASEM climate report was biased to support fossil fuel litigation.

  3. 18 days ago

    [BUSINESS] 2 sources
    Big Four accounting firms face scrutiny from state attorneys general over climate disclosures

    A coalition of 16 US state attorneys general is challenging the ‘Big Four’ accounting firms over climate-related financial disclosure commitments, alleging they conflict with professional duties.

Sources

agora-web.jp · alterna.co.jp · conservativedailynews.com · dailycaller.com · dailycallernewsfoundation.org · nemosnewsnetwork.com · ottumwaradio.com

This summary has been updated 1 time: see revision history