PwC: Difference between revisions

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==Logo==
The following are the several logos the company has used through the years. The current PwC logo was introduced in September 2010, when the company changed its trading name from PricewaterhouseCoopers to PwC. It was designed by [[Wolff Olins]].<ref>{{cite web|url=http://www.internationalaccountingbulletin.com/news/pricewaterhousecoopers-rebrands-to-pwc|title=PricewaterhouseCoopers rebrands to 'pwc'|last=Gyorkos|first=Ana|date=16 September 2010|website=International Accounting Bulletin|access-date=8 May 2017}}</ref><ref>{{cite web|url=http://www.underconsideration.com/brandnew/archives/pwc.php|title=Brand New: PricewaterhouseCoopersWasALongName|website=www.underconsideration.com|language=en|access-date=8 May 2017}}</ref><ref>{{Cite news|url=https://www.fastcodesign.com/1662367/pwcs-mighty-morphin-logo-adapts-to-web-print-and-beyond-video|title=PWC's Mighty Morphin' Logo Adapts to Web, Print, and Beyond [Video]|date=25 January 2012|work=Co.Design|access-date=8 May 2017|language=en-US}}</ref>
 
<gallery class="center">
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===Tax issues===
In 2014, it came to light that PwC had received $55m from [[Caterpillar Inc.]] to develop a [[tax avoidance]] scheme, according to an investigation of the US Senate, and had helped Caterpillar Inc. drastically reduce its taxes for more than a decade.<ref name="Senate report claims">{{cite news|date=31 March 2014|title=Senate report claims Caterpillar avoided $2.4bn in US taxes|newspaper=The Guardian|url=https://www.theguardian.com/business/2014/mar/31/caterpillar-avoid-4billion-us-taxes-senate-report|access-date=16 December 2014}}</ref><ref name="audit firms behind">{{cite news|date=6 November 2014|title=Big four audit firms behind global profit shifting|newspaper=Sydney Morning Herald|url=http://www.smh.com.au/business/big-four-audit-firms-behind-global-profit-shifting-20141106-11i08q.html|access-date=16 December 2014}}</ref> Profits valued at $8bn were shifted from the US to Switzerland, which allegedly made it possible to save more than $2.4bn in US taxes over a decade. In Switzerland profits were taxed at 4%.<ref name="Senate report claims" /> A PricewaterhouseCoopers managing director who was involved in designing the tax savings plan had written at the time to a PwC partner: "We'll all be retired when this ... comes up on audit."<ref name="audit firms behind" />
 
===American International Group Inc.===
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In 2007, India's accounting standards agency [[Institute of Chartered Accountants of India|ICAI]] found partners of PwC guilty of [[Professional negligence in English Law|professional negligence]] in under-providing for nonperforming assets of the now-defunct [[Global Trust Bank (India)|Global Trust Bank]].<ref name="ET-PwC">{{cite news|date=8 January 2009|title=PwC's fate Hangs in Balance|publisher=Economictimes.indiatimes.com|url=http://economictimes.indiatimes.com/articleshow/3950021.cms}}</ref> This led to the [[Reserve Bank of India|RBI]] banning PwC from auditing any financial company for over a year.<ref name="BS-PwC">{{cite news|date=15 March 2008|title=RBI lifts ban on PwC| newspaper=Business Standard India |url=http://www.business-standard.com/india/storypage.php?autono=316917|publisher=Business-standard.com}}</ref><ref name="BS-PwC-tax-evasion">{{cite news|title=PwC has a chequered past with taxmen| newspaper=Business Standard India | date=9 January 2009 |url=http://www.business-standard.com/india/news/pwc-haschequered-pasttaxmen/09/24/345674/|publisher=Business-standard.com}}</ref><ref name="BS-PwC-blacklist">{{cite news|title=Regulator may blacklist Price Waterhouse| newspaper=Business Standard India | date=9 January 2009 |url=http://www.business-standard.com/india/news/regulator-may-blacklist-price-waterhouse/09/24/345651/|publisher=Business-standard.com}}</ref> PwC was also associated with the accounting scandal at the India-based [[DSQ Software]], which collapsed in 2003.<ref name="DSQ-PwC">{{cite web|last=Mukherjee|first=Ritwik|title=Third mess-up by PwC after GTB, DSQ Soft|url=http://www.mydigitalfc.com/companies/third-mess-pwc-after-gtb-dsq-soft-210|url-status=dead|archive-url=https://web.archive.org/web/20090208092150/http://www.mydigitalfc.com/companies/third-mess-pwc-after-gtb-dsq-soft-210|archive-date=8 February 2009|publisher=Mydigitalfc.com}}</ref>
 
In January 2009, PwC was criticised,<ref name="Reuters08Jan2009-PwC">{{cite news|last=Chen|first=George|date=8 January 2009|title=Satyam scandal rattles confidence in accounting Big Four|publisher=In.reuters.com|url=http://in.reuters.com/article/companyNews/idINHKG30879120090108}}</ref><ref name="ET-PwC" /><ref name="ICAI-PwC-explanation">{{cite web|date=7 January 2009|title=ICAI to seek explanation from Satyam's auditor PwC|url=http://www.livemint.com/2009/01/07165018/ICAI-to-seek-explanation-from.html|publisher=Livemint.com}}</ref><ref name="PwC-Satyam-explanation">{{cite news|date=7 January 2009|title=Satyam auditor says examining chairman's statement|work=Reuters|url=https://www.reuters.com/article/marketsNews/idINBMA00213420090107?rpc=44}}</ref><ref name="Rediff-PwC-Satyam-">{{cite web|title=Satyam: Auditors' body to pull up PwC ICAI to seek explanation from Satyam's auditor PwC|url=http://www.rediff.com/money/2009/jan/07satyam-satyam-auditors-body-to-pull-up-pwc.htm|work=Rediff.com}}</ref> along with the promoters of [[Satyam Computer Services|Satyam]], an Indian IT firm listed on the [[NASDAQ]], in a $1.5 billion fraud.<ref>{{cite news|date=8 January 2009|title=Satyam: A Rs 7,000cr Lie|work=The Times of India|url=http://timesofindia.indiatimes.com/Satyam_A_Rs_7000_Cr_Lie/articleshow/3949109.cms}}</ref> PwC wrote a letter to the board of directors of Satyam that its audit may be rendered "inaccurate and unreliable" due to the disclosures made by Satyam's (ex) Chairman and subsequently withdrew its audit opinions.<ref>{{cite news|date=14 January 2009|title=PWC says Satyam audit opinions may be unreliable|work=Reuters|url=https://www.reuters.com/article/rbssTechMediaTelecomNews/idUSBMA00217420090114}}</ref> PwC's US arm "was the reviewer for the U.S. filings for Satyam".<ref>{{Cite news|last=McKenna|first=Francine|title=The Grand Illusion: PwC Settles Satyam U.S. Class Action Claims|work=Forbes|url=https://www.forbes.com/sites/francinemckenna/2011/05/06/the-grand-illusion-pwc-settles-satyam-u-s-class-action-claims/2/#6542929e11dc|access-date=9 May 2017}}</ref> Consequently, lawsuits were filed in the US with PwC as a defendant. Two partners of PricewaterhouseCoopers, Srinivas Talluri and Subramani Gopalakrishnan, were charged by India's [[Central Bureau of Investigation]] in connection with the [[Satyam Computer Services|Satyam]] scandal. After the scandal broke out, Subramani Gopalakrishnan retired from the firm after reaching mandatory retirement age, while Talluri remained on suspension from the firm.<ref>{{cite magazine|author1=Raghavendra Verma|author2=Keith Nuthall|date=8 April 2009|title=PwC partners charged over Satyam|url=http://www.accountancyage.com/accountancyage/news/2240046/styam-partners-charged|url-status=dead|magazine=Accountancy Age|archive-url=https://archive.today/20120722124303/http://www.accountancyage.com/accountancyage/news/2240046/styam-partners-charged|archive-date=22 July 2012|access-date=1 March 2010}}</ref><ref>{{cite news|last=Timmons|first=Heather|date=28 May 2009|title=Two Auditors Held in India Fault System|website=New York Times|url=https://www.nytimes.com/2009/05/29/business/global/29prison.html|access-date=9 May 2017}}</ref>
 
Following the Satyam scandal, the Mumbai-based Small Investor Grievances Association (SIGA) requested the Indian stock market regulator SEBI to ban PwC permanently and seize its assets in India alleging more scandals like "Ketan Parekh stock manipulations."<ref name="SGAI-PwC">{{cite news|title=Investor group wants Sebi to supersede Satyam board| newspaper=Business Standard India | date=5 September 2012 |url=http://www.business-standard.com/india/news/investor-group-wants-sebi-to-supersede-satyam-board/19/56/52475/on|publisher=Business-standard.com}}</ref>
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[[Yukos]] was a Russian oil and gas company that was the target of politically motivated prosecutions by Russian authorities. The company's assets were sold for alleged unpaid taxes and it was declared bankrupt. PwC's audits were the foundation for the firm's defense in a series of continuing trials against former chief executive, [[Mikhail Khodorkovsky]], and the former majority shareholder, [[Platon Lebedev]]. The Russian authorities then went after PwC. In March 2007, police raided PwC's Moscow offices, confiscating documents related to Yukos and charging and convicting PwC of failing to pay 243 million rubles, or $9.4 million, in taxes. PwC withdrew its Yukos audits and less than two weeks later authorities cleared PwC of any wrongdoing in regard to its audit.<ref name="Law 360: Russian Officials Clear PwC Of Fraud In Yukos Audit">{{cite web|last1=Zapata|first1=Ron|date=18 July 2007|title=Russian Officials Clear PwC Of Fraud In Yukos Audit|url=https://www.law360.com/articles/29939/russian-officials-clear-pwc-of-fraud-in-yukos-audit|access-date=11 May 2017|publisher=Law 360}}</ref><ref name="NYTimes: Russian court hands victory to PricewaterhouseCoopers in tax evasion case">{{cite news|last1=Elder|first1=Miriam|date=10 July 2007|title=Russian court hands victory to PricewaterhouseCoopers in tax evasion case|publisher=NYTimes|url=https://www.nytimes.com/2007/07/10/business/worldbusiness/10iht-pwc.4.6595461.html|access-date=11 May 2017}}</ref>
 
In 2010, [[Joe Nocera]] in the ''New York Times'' wrote, "In 2007, with the prospect of parole on the horizon, the same prosecutors—with what appears to be the complicity of PricewaterhouseCoopers, [[Yukos]]'s longtime accounting firm—indicted the two men (Mikhail B. Khodorkovsky and Platon Lebedev), again, bringing a new round of Kafkaesque charges."<ref>{{cite news|last=Nocera|first=Joe|author-link=Joe Nocera|date=5 November 2010|title=Unyielding, an Oligarch vs. Putin|work=[[New York Times]]|url=https://www.nytimes.com/2010/11/06/business/06nocera.html|access-date=26 June 2020}}</ref>
 
In 2010, it was revealed that the Russian government placed pressure on PwC to withdraw audits.<ref name="Rule of law crucial">{{cite news|last=Wilson|first=Tony|date=4 January 2010|title=Rule of law crucial for safe investment|work=[[The Globe and Mail]]|location=Toronto|url=https://www.theglobeandmail.com/report-on-business/your-business/start/tony-wilson/rule-of-law-crucial-for-safe-investment/article1856706/|archive-url=https://web.archive.org/web/20110126132516/http://www.theglobeandmail.com/report-on-business/your-business/start/tony-wilson/rule-of-law-crucial-for-safe-investment/article1856706/page1/|archive-date=26 January 2011}}</ref><ref name="The Wall Street Journal: Oil Tycoon Says PWC Caved to Pressure">{{cite news|last1=White|first1=Gregory L|date=7 September 2010|title=Oil Tycoon Says PWC Caved to Pressure|newspaper=The Wall Street Journal|url=https://www.wsj.com/articles/SB10001424052748704095704575473630120957538|access-date=11 May 2017}}</ref>
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===Tesco===
In 2014, [[Tesco]], a UK retailer, announced that it had overstated profits by £263m by misreporting discounts with suppliers. The Financial Reporting Council started an investigation into accounting practices at Tesco and into the conduct of PwC in carrying out its audits in 2012, 2013 and 2014.<ref>[http://economia.icaew.com/news/december-2014/frc-launches-pwc-tesco-investigation FRC launches Tesco investigation] Economia December 2014</ref> Two members of Tesco's Audit Committee, responsible for monitoring Tesco's relationship with its auditors, had themselves previously worked for PwC, including its chairman, Ken Hanna; he later stood down.<ref>[http://economia.icaew.com/opinion/october-2014/tesco-an-opportunity-for-audit Tesco : an opportunity for audit] Economia October 2014</ref> In 2015 PwC were replaced as auditors of Tesco, ending a 32-year engagement, following a tender process to which they did not participate.<ref>[https://www.bloomberg.com/news/articles/2015-05-11/tesco-ends-32-year-pwc-relationship-after-accounting-scandal Tesco Ends 32-Year PwC Relationship After Accounting Scandal] Bloomberg.com May 2015</ref> In June 2017, the Financial Reporting Council said there was no "realistic prospect" that a tribunal of the UK's accountancy watchdog would rule against the auditor PwC concerning its involvement in [[Tesco]]'s 2014 case.<ref name="Financial Times: Accounting watchdog closes PwC/Tesco probe">{{cite news|last1=Martin|first1=Kate|date=5 June 2017|title=Accounting watchdog closes PwC/Tesco probe|newspaper=Financial Times|url=https://www.ft.com/content/7a03dfa3-72cc-3af3-9950-ceb61b3f6f57 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/7a03dfa3-72cc-3af3-9950-ceb61b3f6f57 |archive-date=10 December 2022 |url-access=subscription |url-status=live|access-date=6 June 2017}}</ref>
 
===Bank of Tokyo-Mitsubishi UFJ===
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=== Improper audit services in US ===
During 2019, PwC's US affiliate agreed to pay more than $7.9 million to the US regulator, [[U.S. Securities and Exchange Commission|SEC]], to settle allegations that it improperly performed IT and other non-audit services for several audit clients.<ref>{{Cite news|last=Heller|first=Matthew|date=24 September 2019|title=PwC Fined $7M for Audit Independence Violations|work=CFO.com|url=https://www.cfo.com/accounting-tax/2019/09/pwc-fined-7m-for-audit-independence-violations/#:~:text=2022%20Outlook%3A%20CFOs'%204%20realms,audit%20services%20for%20audit%20clients.&text=must%20ensure%20that%20non%2Daudit,public%20companies%2C%E2%80%9D%20Anita%20B.|access-date=28 January 2022}}</ref>
 
=== Angola corruption ===
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=== Kier and Galliford Try ===
In June 2022, the UK's [[Financial Reporting Council]] fined PwC and a former partner, Jonathan Hook, over audit failures relating to construction firms [[Galliford Try]] and [[Kier Group]]. PwC was fined just over £3m for failing to adequately challenge revenue and costs recognised by Galliford Try's management on large, complex long-term construction contracts during 2018 and 2019 audits, and fined £1.96m for similar failures during the 2017 audit of Kier. Both fines were reduced (from £5m and £3.35m respectively) to reflect PwC's cooperation with the investigation.<ref name="Morby-07Jun2022">{{cite news |last1=Morby |first1=Aaron |title=PwC handed £5m fine for Kier and Galliford Try audits |url=https://www.constructionenquirer.com/2022/06/07/pwc-fined-over-kier-and-galliford-try-audits/ |access-date=7 June 2022 |work=Construction Enquirer |date=7 June 2022}}</ref>
 
===Americanas (AMER3) controversy===
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