The move comes amid a worldwide debate over how to ensure accounting firms remain independent of the companies they audit.
| PwC is planning to give up tens of millions of dollars of consulting work for its US audit clients to reduce the risk of conflicts of interest, challenging its rival Big Four firms to follow suit.
The UK accounting regulator has already pushed the biggest accounting firms to make their audit operations in the country more independent of their consulting arms. “We have really good competitors but what they do is up to them,” said Tim Ryan, senior partner of PwC US. Mr Ryan said the foregone services total up to $US00 million annually in fee income, from work such as assessing a company’s non-financial systems or giving advice on strategic plans.“There was a perception that we do a lot of consulting work for our audit clients,” he said. “We have no desire to be close to the line.”
The move by PwC US is limited to miscellaneous consulting and would not affect tax work, it said. It could affect its consulting revenues outside the country, if its local member firms work for overseas subsidiaries of US audit clients. The work would be phased out by 2025, PwC said.
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