PricewaterhouseCoopers released an update Tuesday to its
During the recently completed PCAOB inspection, PwC anticipates that only one of the 52 engagements that were subject to inspection will be included in Part 1.A of the report, the section where audit deficiencies are highlighted. The report also discusses how the firm issued guidance to its audit teams on how to cope with the COVID-19 pandemic, for example, by doing remote inventory observations along with going concern and impairment assessments of clients.
“I’m thrilled with the progress that we’ve made, but I also know that the progress is not over,” PwC U.S. assurance leader Wes Bricker told Accounting Today. “Quality has been our first priority. That is reflected in the results. We’ve made significant progress on improving our inspection results. The PCAOB inspection cycle having recently been completed, and our own internal inspection cycle also having been concluded, I feel really good about the progress we’ve made. Only one engagement of the 52 that were subject to inspection being included in part 1.A, that reflects a number of steps we’re taking to enhance our assurance work. We’ve seen a lot more consistency and execution across our entire portfolio. It really reflects the positive investments we’ve made and the leadership of our people.”
PwC has continued to invest in the latest auditing technology as well to automate the routine processing of transactions, while emphasizing the critical thinking skills that auditors need to combine with the technology.
PwC will be dealing with the incoming Biden administration and a new Securities and Exchange Commission chairman, Gary Gensler, who is likely to increase enforcement at the SEC. Bricker, a former chief accountant at the SEC, was asked what he thought of what stance the SEC and the PCAOB might take with enforcement now. “It’s impossible to know how the incoming chair will leave his mark on the mission of the agency,” he responded. “We will stay focused on what we can control: the quality of the work that we do.”
After the riots in the Capitol this month, PwC issued a statement last week pulling back on its political action committee contributions. “Over the years, the PwC PAC has taken a bipartisan approach to supporting federal candidates and elected officials who are aligned with certain business and professional interests of PwC partners,” said the firm on
Other Big Four firms have made similar statements. “I certainly associate myself with the PwC PAC statement, which we released and I support,” said Bricker. “But I would say more broadly we’re really focused on the purpose of the firm, which is building trust in society and solving problems, living out our values, and supporting our people with the technology and the skill sets that they need to really bring our purpose to life.”
One area where he plans to increase the firm’s assurance work is in environmental, social and governance reporting. “What I see is a continued increase in the number of companies that are preparing, producing and publishing ESG information,” said Bricker. “But I also see an increase in the use of that information in the marketplace to make investment decisions, so correspondingly I see a role for assurance in building trust in the information that’s increasingly being delivered into the marketplace. I do see a place for us to increase the confidence in the quality of that information.”
Overall, Bricker hopes to improve audit quality further at PwC. “I’m thrilled that we’ve made progress,” he said. “Quality will always be our number one priority. This is a milestone moment, but we won’t rest on our laurels. We will be guided by our purpose and values in continuing to be relevant to the need for trust in the marketplace.”
