PracticeAuditRivals question PwC role in EU accounting reforms

Rivals question PwC role in EU accounting reforms

Collaboration between a PwC technical expert and Cypriot government raises concerns about links between the Big Four and regulators

RIVALS TO PwC have questioned the Big Four firm’s involvement in the process of reforming European accounting law.

The collaboration between a PwC technical expert and the Cypriot government on a new EU accounting directive has raised concerns among some auditors about links between the Big Four and those that regulate them.

The Financial Times reported that the Cypriot government, which began its presidency of the EU last month, brought in a PwC employee to help it push the reforms forward. However, the unnamed expert did not work on the more contentious audit market reform.

According to the FT, one senior figure at another auditor said the arrangement could allow PwC to influence the reform, while Mazars called for a thorough review of secondments by the Big Four to those charged with regulating the profession.

Cyprus’ permanent representation to the UK responded to the criticism by pointing out that using experts when government expertise is unavailable was “common practice” and that their use was strictly supervised.

PwC Cyprus said the process of selecting the secondee was “fully transparent” and the practice of providing government support was “well established”.

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