November 29, 2020

PwC’s 2017 to Forget Tour Rolls On

pwc hna

PwC, the Big 4 accounting firm most likely to request a mulligan on 2017, has been censured and fined $1 million by the PCAOB for violations in its audit of Merrill Lynch. The PCAOB order follows a SEC action against Merrill from last year after the broker “held tens of billions of dollars” of customer funds “that were subject to liens by third parties.” For those of you that like quoting citations, that violates Commission Rule 15c3-3, 17 C.F.R. § 240.15c3-3, aka the “Customer Protection Rule.”

As for PwC, the firm was supposed to:

obtain sufficient appropriate evidence to support its opinion about (a) whether Merrill’s internal controls over compliance with the Customer Protection Rule were effective during the period of June 1, 2014 to December 31, 2014 and at the end of FY 2014, and (b) whether supplemental information in certain filings by Merrill concerning its compliance with the Customer Protection Rule were fairly stated in all material respects, in relation to Merrill’s financial statements as a whole. However, PwC failed to obtain sufficient evidence in each of these categories.

In a statement, PwC said, “We are pleased to have resolved the matter. Delivering quality is our top priority.”

Across the spectrum of bad news PwC has had this year, this probably ranks behind settling multi-billion-dollar lawsuits and Envelopegate, but it’s still not an #auditorproud moment.

[PCAOB Order]

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

Life at PwC Is All About Bewo Werk Llwe Ll

Leave it to PwC to deliver its “Be Well, Work Well” message in a weird and confusing way. View this post on Instagram A post shared by Life at PwC (@lifeatpwc) Their futures are so bright, they gotta wear shades, I guess. Or it’s to hide the enormous bags under their eyes from the lack […]