PracticeAccounting FirmsPwC moves to quell Japan crisis

PwC moves to quell Japan crisis

Firm's global head rushes to control damage from Japanese audit suspension

Samuel DiPiazza, the global chief executive of PwC, has called on partners
around the world to ‘reach out’ to clients affected by the ban on the firm’s
Japanese business.

The firm’s Japanese arm, Chuo Aoyama PwC, was suspended for two months this
week for it involvement in an accounting fraud at cosmetics company Kanebo.

PwC, the world’s largest accounting firm, said it would support its
beleaguered Japanese arm, but has already suggested that it may build up a new
firm in Japan.

According to the FT, DiPiazza has emailed clients with Japanese
operations, including Axa, Unilever, Xerox, Reuters and Ford, assuring them that
the Japan ban does not apply to audit work done to meet overseas reporting
requirements of clients.

In Japan, meanwhile, the country’s accounting institute called on members to
help Chuo Aoyama PwC, and warned that it would take strict measures against
rival firms attempting to poach clients and staff from the embattled firm.

‘We remind firms that they should not poach accountants and, if they breach
the rules, we will take firm steps,’ said Tsuguoki Fujinuma, chairman of the
Japanese Institute of Certified Public Accountants.

Chuo Aoyama PwC has 2,300 clients who will now have to rethink their audit
contracts.

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