PricewaterhouseCoopers, the world's largest audit firm, is to jump on the international merger bandwagon, forming international 'clusters' for its networks of firms.

Following a path laid down by Ernst & Young, the smallest of the Big Four in the UK, PwC has announced today that it is to form three major geographic 'clusters'.

The East Cluster will be led by Silas Yang, senior partner of PwC China, the Central Cluster by Ian Powell, senior partner of PwC UK and the West Cluster by Dennis Nally, senior partner of PwC US.

The set-up is very similar to E&Y's organisation until recently. The firm had set up regional connections between firms from emerging markets and more traditional markets to boost growth.

E&Y recently decided to go a step further by 'merging' those networks, but it is unclear how much power has been devolved upwards.

As part of the PwC moves, it also said it planned to more rigorously policy quality of service across the world, revising its global standards.

PwC's 'West Cluster' will include the US, Canada, Mexico, South and Central America and the Caribbean; the 'Central Cluster' will include the UK, western Europe, central and eastern Europe, the Middle East, India, Pakistan, Sri Lanka, Africa, the Channel Islands, Gibraltar, Iceland and Isle of Man; and the 'East Cluster' will include Hong Kong, China, Singapore, the South East Asia Peninsula, Australia, New Zealand, Japan, Korea, and the South Pacific countries.

The changes will now be put to the vote among partners.

'PwC has for many years led the profession in developing a highly regionalised and integrated global network of firms, focused on delivering high quality services to an increasingly complex marketplace,' said Samuel A. DiPiazza Jr, Global CEO, PricewaterhouseCoopers International Limited.

'These new proposals build on 10 years of highly successful client service and revenue growth and reflect the connected global world in which our clients operate. Agility and speed are crucial to the future success of our clients and PwC itself. These adjustments to our organisational structure will improve the integrated service we offer and align our strategy more closely around the world.

'The revised structure, and the expanded set of network standards that accompany it, are rooted firmly in the partnership culture that has made PwC the leading professional services network in the world. While our member firms will be more closely aligned and more responsive, they will continue to be locally owned and managed, preserving the high level of accountability to our stakeholders and regulators, while encouraging the entrepreneurial spirit that has been the foundation of their success. These changes preserve our approach of a global service delivered locally.'