PwC losing US tax work
PricewaterhouseCoopers has suffered a large drop in the amount of US tax work it carries out due to the implementation of the Sarbanes-Oxley Act.
Link: Sarbanes-Oxley special report
The firm’s chief executive Sam DiPiazza told a Senate Banking Committee that PwC had already lost 20% of its tax work in the country and was expecting to see further losses. He placed the blame for the drop in work on Sarbanes-Oxley, despite the Act not prohibiting auditors from carrying out such work.
‘Our tax practice has experienced a significant decrease in demand for these services from our SEC audit clients,’ said DiPiazza. ‘There seems to be a continuing drumbeat that auditors who provide tax services to audit clients are not independent.’