The sanctions were imposed after PwC failed to implement a robust quality control system, leading to issues in addressing complex independence matters effectively.
- Sanctions Imposed:
- PwC is censured by the Public Company Accounting Oversight Board (PCAOB).
- A civil money penalty of $2,750,000 is imposed on PwC.
- PwC is required to undertake certain remedial actions outlined in Section IV of the Order.
- Basis of Sanctions:
- The sanctions are imposed because PwC violated PCAOB quality control standards related to maintaining independence in fact and appearance in all required circumstances.
- The violations include failure to implement a system of quality control ensuring independence and facing complex issues impacting independence that were not specifically addressed in applicable rules.
- Independence Office:
- PwC maintains an Independence Office responsible for developing guidance, training, and resources related to independence.
- The Independence Office also serves as a consultative resource for PwC professionals on independence matters.
- However, the PCAOB found shortcomings in PwC’s consultation with this office, especially in scenarios where terminating an audit relationship to pursue other business relationships with audit clients was considered. This raised concerns about potential conflicts of interest and compromised independence.
- Consent to the Order:
- PwC consents to the entry of the Order without admitting or denying the findings except regarding the Board’s jurisdiction and subject matter of the proceeding.
- This consent is part of an Offer of Settlement submitted by PwC.
Source:
Order Instituting Disciplinary Proceedings, Making Findings, and Imposing Sanctions In the Matter of PricewaterhouseCoopers LLP, Respondent
PCAOB Release No. 105-2024-014, March 28, 2024
Microsoft Word – 105-2024-014- PwC-US (pcaobus.org)
