According to Novosti, the russian tax authorities are more than a little put out by PwC in it ongoing case aimed at proving PwC’s complicity in alleged illegal finance schemes and issuing two different audit reports at the now bankrupt Yukos oil company:
“Actions of PwC representatives can be interpreted as unscrupulous and aimed at deliberately delaying the process,” the tax service said.
It would premature to pass judgment at this stage of proceedings. The Novosti report reads like a comedy of errors with more than a touch of ‘Now you see it, now you don’t’ knock about court banter.
What’s more interesting is that the tax authorities are alleging direct link between financing and audit. If they are able to prove the link then PwC has a lot to answer for. Globally. It will of course answer that:
PricewaterhouseCoopers member firms across the world are independently owned, and their operations are managed by local partners.
And on that basis, no responsibility attaches to any other part of the PwC empire. Or does it? According to PwC’s latest Global Annual Review:
… we are undertaking a major programme of investment into the audit delivery systems of tomorrow: reshaping our methodologies, our work flow systems and the way we connect with clients in the digital world. We have also introduced an enhanced framework of accountability for quality throughout the global network, from leadership to engagement team level. The framework clarifies personal and collective responsibilities for high-quality work and the implications for shortfalls in performance against expectations. Application of the framework will be overseen by our Global Board and Extended Leadership Team and monitored through a network of Chief Quality Officers appointed by PwC firms. These measures illustrate how seriously we take our obligation to provide high quality audits.
I draw several conclusions:
- What PwC has been doing is not up to snuff (note: didn’t stop them earning record fees)
- No-one really knows who’s responsible for what (the network isn’t working)
- Global oversight is now in force but we don’t know how effective it is likely to be
Technorati Tags: audit quality, PwC
