PwC exits more than a dozen countries to avoid scandals: FT

[BENGALURU] PwC has shut down operations in more than a dozen countries that are deemed too small, risky or unprofitable, as the Big Four accounting firm aims to prevent repeats of scandals that have affected it, the Financial Times (FT) reported on Wednesday (Apr 16).

The decision was taken due to mounting differences with local partners, the FT said, citing sources familiar with the matter.

Local leaders at the firm said they lost over a third of their business in recent years after pressure from PwC’s global executives to drop risky clients, according to the report.

PwC has faced an exodus of clientele and layoffs since last year.

PwC declined to comment on the report to FT. PwC did not immediately respond to a Reuters request for comment outside business hours.

The accounting giant has cut ties with its Sub-Saharan Francophone Africa firms after a strategic review, the company said last month.

China hit PwC’s mainland China unit with a six-month suspension and a US$62 million fine for audit failures related to property developer China Evergrande’s US$78 billion fraud.

Last month, Britain’s Financial Reporting Council fined PwC £4.5 million (S$7.8 million) in relation to the audit of Wyelands Bank for its 2019 financial year.

The firm is working with Saudi Arabia and its sovereign wealth fund to mend relations after the kingdom suspended activities between the US$925 billion fund’s holding company and PwC. REUTERS