Big Four Accounting Firms Earn Millions from Israeli State-Owned Companies

Four major accounting firms, KPMG, EY, BDO, and Deloitte, have collectively earned approximately 59 million shekels (about $16 million USD) in auditing fees from Israeli state-owned companies between 2023 and 2025. KPMG received the largest share, nearly 20 million shekels, for its services. EY Israel followed with about 18.6 million shekels, BDO with approximately 10.3 million, and Deloitte with around 10.1 million.

These figures are part of a new transparency initiative by the Government Companies Authority, which is publishing annual reports on auditing fees paid by the 68 state-owned entities. The total auditing fees paid by these companies to accounting firms annually amount to about 27 million shekels, totaling around 80 million shekels over the three-year period covered by the report.

State-owned companies are legally required to appoint an auditor to review their financial statements. However, the committee responsible for recommending auditor appointments had been inactive for nearly a decade until resuming operations in 2025. Upon its reactivation, the committee recommended rotating auditing firms and introducing 24 new audit offices out of 40 proposed.

KPMG audited four state-owned companies, including the Israel Electric Corporation, which alone paid over 12 million shekels in fees, making it the highest-paying client. EY audited eight companies, including Mekorot, which paid about 6 million shekels, and Israel Post, which paid 4.6 million before its privatization. Deloitte audited five companies, including Israel Railways (over 7 million shekels), and BDO audited three, including Israel Aerospace Industries (nearly 7 million shekels).

The size of the fees is naturally correlated with the size and complexity of the state-owned companies, with infrastructure, transportation, electricity, and defense industries typically requiring more extensive auditing.