PwC says Sarbox made it rethink business model

The Eighth Directive and Sarbanes-Oxley have forced PwC to rethink its
business model, Samuel DiPiazza, the firm’s global CEO, has said.

Speaking in advance of the Global Economic Forum in Davos later this month,
said: ‘The Eighth Law Directive and Sarbanes-Oxley have forced us to re-think
long-standing assumptions about our business model – including the way we serve
clients, identify and mitigate risk, and manage our global network.

‘The challenge is to translate our substantial risk and compliance efforts
into opportunities that generate competitive advantage by continually improving
quality and enhancing value, not merely reacting to mandated activity.’

Speaking about the biggest challenges facing PwC, he said: ‘Overregulation is
clearly one evolving issue that continues to impact PwC and our clients.
Following a series of high-profile business scandals, legislation was enacted in
many parts of the world.

‘Although this resulted in dramatic changes for the accounting profession,
such steps were needed and we are now beginning to see progress in raising
investor confidence. We do need, however, to resist any immediate additional
changes to the rules and give regulators the chance to regulate and markets the
chance to embrace meaningful change.’

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