October 17, 2021

‘Big R’ Restatements Are Quite the Thing For PwC Audit Clients

All the Tesla haters are having a field day with this on Twitter.

The Wall Street Journal reported today:

[PwC] has had a streak of accounting problems surface recently at U.S. companies it audits, including an uptick in high-profile restatements. Its clients account for three of the five biggest restatements so far this year, measured by cumulative impact on net income, according to a Wall Street Journal analysis of data from research firm Audit Analytics.

Companies audited by PwC have been more prone over the last couple of years than clients of the other Big Four firms to do the most serious type of restatement, the analysis found. These involve a company alerting clients to a problem and reissuing its financial statements.

Since the start of 2018, PwC clients have done 15 of these “Big R” restatements, more than the combined total of 11 for companies audited by Deloitte LLP, Ernst & Young LLP and KPMG LLP, according to the analysis.

Anyone surprised? You shouldn’t be.

PwC Clients More Likely to Revise Financial Statements [Wall Street Journal]

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