Category Archives: PwC

China gives PwC record £47m fine and six-month ban over Evergrande

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Accountancy firm accused of issuing false audits says it has sacked six partners and five other staff have left

The China arm of the accountancy firm PwC has been banned for six months and fined a record 441m yuan (£47m) over its audit of the collapsed property developer Evergrande, according to Chinese authorities.

Beijing’s ministry of finance imposed a six-month business suspension on PwC Zhong Tian, the accounting firm’s main division in mainland China, along with a 116m yuan penalty.

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PwC to start tracking working locations of all UK employees

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Accounting firm tells its 26,000 workers move is to ensure workers spend ‘minimum of three days a week’ in office

The consultancy PwC has told its employees it is going to begin tracking their working locations to ensure that all workers spend “a minimum of three days a week” in the office or at client sites.

In a memo sent to its 26,000 UK employees, the big four accounting firm announced that it will start monitoring how often employees work from home in the same way it monitors how many chargeable hours they work.

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PwC expecting six-month China ban over Evergrande audit

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Company tells clients it also expects to receive a large fine following property developer’s collapse

The auditor PwC China has reportedly told clients that it expects to receive a six-month ban from Chinese authorities, and potentially a large fine, as a punishment for its role in auditing the collapsed property developer Evergrande.

PwC expects to be banned from conducting regulated activities in China, such as signing off on financial results, for six months starting in September, the Financial Times reported.

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PwC chief’s $1.2m bonus kept ‘secret for more than a year’, inquiry told

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Kevin Burrowes received additional salary from the firm’s international arm but did not initially reveal it to parliamentary inquiry into company

The chief executive of PwC Australia, Kevin Burrowes, received a $1.2m payment from the consulting company’s international arm which he did not initially reveal to the parliamentary inquiry into the 2015 leaking of confidential government tax reform information.

A parliamentary inquiry was told on Friday that Burrowes first told the corporations and financial services committee that he was paid an annual salary of $2.4m. That was later corrected to $2.8m.

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‘Disregard for truth’: inquiry calls for greater scrutiny of private consultants following PwC tax scandal

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But Greens say the consulting services inquiry report does not go far enough, calling for stronger action and penalties

Embattled consultancy PwC should be “open and honest” about its breach of confidential government information, and the public service needs to be better equipped to ensure value for money is obtained from consultants, according to the long-awaited findings of a Senate inquiry.

The committee has also recommended stricter regulations for large partnerships, including PwC, be considered, and that consultancy contracts worth more than $2m receive greater government scrutiny.

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Productivity soars in sectors of global economy most exposed to AI, says report

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Employers in UK, one of 15 countries studied, willing to pay 14% wage premium for jobs requiring AI skills

The sectors of the global economy most heavily exposed to artificial intelligence (AI) are witnessing a marked productivity increase and command a significant wage premium, according to a report.

Boosting hopes that AI might help lift the global economy out of a 15-year, low-growth trough, a PwC study found productivity growth was almost five times as rapid in parts of the economy where AI penetration was highest than in less exposed sectors.

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Expert says employers can be found liable for sexual assault outside of work hours as PwC fights case

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Accountancy firm argues it is not liable since it had taken ‘all reasonable steps’ to prevent such behaviour

Employers can be found vicariously liable for alleged sexual assault that occurred between employees outside working hours but only where it was connected with their employment, according to a leading employment law expert.

PwC is facing legal action claiming the accountancy firm is liable for the alleged rape of a graduate employee following after-work drinks.

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Liberal senator demands PwC executives ‘bare their necks’ at inquiry into consultancies

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Richard Colbeck says PwC International must clarify reports it took control of Australian firm after tax leaks scandal

The head of a second parliamentary inquiry has demanded answers from PwC International after reports it took control of the Australian firm to contain the tax leaks scandal, warning senior managers need to “come clean” and “bare their necks”.

The rebuke by Liberal senator Richard Colbeck, who chairs the senate inquiry into the consulting industry, comes a day after the head of a separate inquiry, Labor senator Deborah O’Neill, called for PwC International bosses to face questions.

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‘Deadly serious’: Australian regulators criticise PwC refusal to hand over report into tax leaks

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Consultancy’s global executive says report suggests there’s no evidence confidential information was used for commercial gain

PwC has faced furious rebuke from politicians, the country’s tax office and a regulator for repeatedly refusing to share a report it used to argue that a damaging tax leaks scandal was isolated to Australia.

The report, by law firm Linklaters, was cited by PwC’s global executive to assure regulators there was no evidence that confidential details about multinational tax laws received by the firm’s international partners were used for commercial gain.

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Manufacturers say UK becoming more competitive as global hub, survey finds

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Findings show British bosses growing in confidence over sector’s prospects despite ‘headwinds of sustained economic challenges’

Britain’s largest manufacturers believe the UK is increasing its competitiveness as a global hub for manufacturing, despite high energy costs, worker shortages and political instability holding back progress.

In a crunch period for the economy before the general election, the manufacturing trade body Make UK and the accountancy firm PricewaterhouseCoopers said industry bosses were growing more confident about the sector’s prospects, but “headwinds of sustained economic challenges” still remained.

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Politics live: cyber chief takes leave as defence department announces recall over ‘workplace matter’

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Follow the day’s news live

And here is the standard of some of the “debate” among senior parliamentarians.

Meanwhile, Australia’s sense of social cohesion is at its lowest recorded ebb.

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Big four consultancy firm partners could be banned from being on board of regulator after PwC scandal

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Greens say Labor has agreed to stop senior executives or partners at firms from becoming board members of Tax Practitioners Board

Partners at big four consultancy firms could soon be banned from being board members of a regulator that investigates the conduct of their colleagues due to conflict of interest concerns.

The Tax Practitioners Board (TPB), which proved instrumental in uncovering the scale of a scandal involving the misuse of confidential Treasury information by a partner at PwC Australia, has the power to deregister accountants after serious misconduct.

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Powerful US and UK committees lobbied to pressure PwC to release report sought in Australia

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Exclusive: Richard Colbeck urged counterparts to seek document used to clear firm’s partners of wrongdoing

Powerful parliamentary oversight committees in the US and the UK have been urged to pressure consultancy firm PwC to publish a report used to clear its international partners of wrongdoing.

In response to a scandal involving the misuse of confidential Australian Treasury information about proposed multinational tax avoidance laws, PwC global commissioned the law firm Linklaters to investigate the conduct of its international partners.

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Australian Catholic church’s insurer launches court bid to cover smaller share of abuse compensation

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Scandal-plagued PwC would determine payout rates under scheme proposed by Catholic Church Insurance in effort to avoid insolvency

The Catholic church insurer wants to establish a scheme that would stave off its own insolvency by paying church bodies only a fraction of the money owed to abuse survivors at rates to be determined by the scandal-plagued consultancy PwC, documents show.

Catholic Church Insurance is facing significant financial turmoil due to the rising volume of abuse claims, estimating it has $381m in liabilities relating to professional standards payouts to various church entities, including dioceses and church-aligned charities.

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PwC partner at centre of tax advice scandal banned by Asic for eight years

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Financial regulator finds Peter John Collins is ‘not a fit and proper person to provide financial services’

Australia’s financial watchdog has issued an eight-year ban to a former PwC partner at the heart of a confidentiality scandal that triggered a reputation crisis at the firm and a costly sell-off.

The Australian Securities and Investments Commission has been investigating the conduct of Peter John Collins, of Sandringham in Victoria, who has been accused of sharing confidential government information about multinational tax avoidance with colleagues.

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PwC tax leak scandal not isolated to Australia, senators claim

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Accounting firm says no evidence confidential information used by partners outside Australia for commercial gain

The politicians who exposed PwC’s leak of government secrets have claimed the scandal is not isolated to Australia, citing emails that reveal global partners knew they received confidential material and provided assistance.

Confirmation that PwC Australia partners shared confidential details about multinational tax plans triggered an internal investigation, released on Wednesday, which exposed a culture where “revenue is king” and profit is sometimes prioritised above ethics.

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PwC Australia reveals more breaches on heels of scathing report into consultancy scandal

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Firm releases ‘statement of facts’ alongside Switkowski review making further admissions about government consultation work

PwC Australia has revealed a series of additional breaches of confidentiality as a new report details a litany of corporate failures that allowed confidential government information to be misused for years without any disciplinary action.

The confessions are detailed in what PwC Australia has described as “a statement of facts”, which was published alongside a review into its internal culture by the former Telstra boss Ziggy Switkowski. His report found some partners prioritised profit above ethics and internal dismay at the firm’s response to the scandal.

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PwC to restructure board as report into consultancy scandal released

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PwC Australia will also commit to publishing audited financial statements

PwC Australia will overhaul its corporate structure, adding three non-executive directors to its governance board and a non-executive chair, as well as committing to publishing audited financial statements.

The announcement comes ahead of the release of an investigation into the firm’s misuse of confidential government information, which triggered a reputation crisis and widespread condemnation.

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Poundland moves to buy 71 Wilko sites with possible jobs guarantee for staff

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PwC says owner plans to reopen stores under Poundland brand throwing lifeline to as many as 1,800 staff

Poundland is to acquire up to 71 Wilko sites that it intends to reopen under its own brand in a deal that could throw a lifeline to some of the about 1,800 staff who will lose their jobs at the stricken retailer.

Under the deal struck by administrators PricewaterhouseCoopers (PwC) with Poundland’s parent company Pepco, the sites will be acquired only after all 408 Wilko stores are shut and more than 12,000 staff made redundant.

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Wilko: rescue deal to save many stores at risk over supplier debts

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Big suppliers want debts paid upfront in order to guarantee supplying shops

A rescue deal to save the majority of Wilko’s stores has been put at risk as some key suppliers want outstanding debts repaid upfront to guarantee continuing to provide products to the chain.

Doug Putman, who engineered a turnaround of HMV in the UK and owns Toys R Us in Canada, has been negotiating a deal to save as many as 300 of Wilko’s 400 stores, throwing a lifeline to its more than 12,000 staff.

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