Price Waterhouse[edit]

Samuel Lowell Price, an accountant, founded an accountancy practice in London in 1849. [12] In 1865
Price went into partnership with William Hopkins Holyland and Edwin Waterhouse. Holyland left
shortly after to work alone in accountancy and the firm was known from 1874 as Price, Waterhouse
& Co.[12] (The comma was dropped from the name much later.) The original partnership agreement,
signed by Price, Holyland and Waterhouse could be found in Southwark Towers, one of PwC's
important legacy offices (now demolished)

PricewaterhouseCoopers (trading as PwC) is a multinational professional services network. It is

the world's second largest professional services network, as measured by 2013 revenues, and is
one of the Big Four auditors, along with Deloitte, Ernst & Young (EY) and KPMG.[5]
PwC is a network of firms in 157 countries with more than 184,000 people. It had total revenues of
$32.1 billion in FY 2013, of which $14.8 billion was generated by its Assurance practice, $8.2 billion
by its Tax practice and $9.2 billion by its Advisory practice.[6]
The firm was formed in 1998 by a merger between Coopers & Lybrand and Price Waterhouse. [1] The
trading name was shortened to PwC in September 2010 as part of a rebranding. [7]
As of 2012 PwC United States is the fifth-largest privately owned organization in the United States.[8]

Our history

Below are key milestones in our history:

1922

Charles P. White and Percival S. Page open an accountancy practice in the Philippines called White,
Page & Co.

1948

After the war, a new partnership is formed under Stewart, Dacanay, Cunanan & Co.

1951

The company name changes to Stewart, Cunanan & Co.

1956

Joaquin Cunanan becomes the first Filipino senior partner of the company.

1958

The company is designated as Price Waterhouse correspondent in the Philippines

1962

The company inaugurates its Management Advisory, then Tax Services

1964

The company name changes to Joaquin Cunanan & Co.

1970

Jose Florento becomes senior partner

1973

The company becomes a member of Price Waterhouse International

1975

The company opens its Cebu branch office

1981

Corazon de la Paz-Bernardo becomes chairman and senior partner; also becomes Price Waterhouse's
first lady senior partner worldwide.

1982

The company celebrates its 60th anniversary

1985

Joaquin Cunanan is elevated to the Accountancy Hall of Fame

1997

The company celebrates its 75th anniversary

1998

Price Waterhouse merges globally with Coopers & Lybrand to create PricewaterhouseCoopers (PwC)

2001

Jerry Isla becomes chairman and senior partner

2002

The company celebrates its 80th anniversary

2005

The company name changes to Isla Lipana & Co.

2006

Tammy Lipana becomes chairman and senior partner

2007

WE are 85! Wisdom and experience

2009

Judith V. Lopez is elected chairman and senior partner

2012

The company celebrates its 90th anniversary

2013

Alexander B. Cabrera becomes chairman and senior partner

Past the residential area of mansions and chalets in the Malate-Ermita area, the government center clustered
around Intramuros and alongside Taft Avenue, up the Jones Bridge with the Post Office on Plaza Lawton to the
right, and down the bridge at Plaza Moraga, was the quaint Filipinas Insurance Co. Building. This was the decade of
the Twenties, when life was simpler.
It was in this building that Scottish accountants Charles P. White and Percival S. Page established one of the
earliest accounting firms in the Philippines: White, Page & Co. The forerunner of todays Isla Lipana & Co. (formerly
Joaquin Cunanan & Co.), White, Page & Co. was among the accounting firms, banks and insurance companies
which flourished in the financial district of Old Manila.
In the bustling business hub, the two public accountants offered their services, as their neighbors including the
Hong Kong and Shanghai Banking Corporation, Standard Chartered Bank, and the First National City Bank went
about their own businesses. Nearby were Clarkes, a famous refreshment parlor on Escolta; numerous shopping
arcades, as well as Chinese stores and trading companies on Rosario Street, leading up to Binondo Church.

White and Pages landlord in the Filipinas Building was Don Enrique Zobel, whose Scottish manager of Ayala y
Companias insurance ventures was Jose McMicking; no doubt the three Scotsmen must have been close friends.
In the mid-1930s, White, Page & Co. transferred to the National City Bank Building close by, which Don Enrique
purchased in 1940.

Some years before World War II, White, Page & Co. already maintained correspondent relations with the large U.S.based firm Price Waterhouse, with the former auditing the latters clients in the Philippines.
Santo Tomas Internment Camp records show that Percival Stevens Page was a prisoner of war until the universitys
inmates were liberated by the U.S. Armys First Cavalry Division. Like 3,000 other expatriate internees, Page
suffered disease and starvation for three long years from the earliest days of the war in January 1942, until
February 3, 1945.
Charles P. White may have been more fortunate in that his name does not appear in any World War II prisoner-ofwar rosters in the Philippines.
After the war, in 1946 the company effected a name change to Stewart, Dacanay & Co. To the partnership of A.D.
Stewart and Julio B. Dacanay was added Joaquin Cunanan and the firms name became Stewart, Dacanay,
Cunanan & Co. two years later.
The company became the first major accounting firm in the country to have a formal worldwide reach when it was
designated the official Price Waterhouse correspondent in the Philippines in 1958.
Offering clients advice and assistance based on their financial, analytical and business process skills in the
implementation of their strategy, a new division was formed in 1962: the Management Advisory Services. Not long
after that, Tax Services, as well, commenced operations, helping companies address tax requirements.
Another name change was effected in 1964 when the firm came to be known as Joaquin Cunanan & Co., as
Messrs. Stewart and Dacanay had both retired. Joaquin Cunanan, called Jack by his colleagues and friends,
played a huge part in steering the firm toward the reputation for excellence and professionalism which the company
enjoys to the present.
A former stenographer at Bob, Cock & Templeton receiving P100 a month, Cunanan was appointed United Nations
Chief of the Budget Control Office by the UN General Assembly in 1946. He was the first Filipino to hold an
executive position in the UN organization, and the first Filipino to become a member of the prestigious American
Institute of Certified Public Accountants.
A string of other distinctive feats filled the accounting greats illustrious career. He was elevated to the Accountancy
Hall of Fame by the Philippine Institute of Certified Public Accountants in 1985, and was given the Outstanding
Master Mason Award in the field of accounting in 1989 by the Grand Lodge of Free and Accepted Masons in the
Philippines.
A changing of the guard took place in 1970 when Jose Florento took over the companys reins. It was under his
watch that the firm became a member of Price Waterhouse International. He also engineered the effort to expand
the companys provincial operations, with the Cebu branch office opening in 1975.

When Corazon S. de la Paz-Bernardo became the firms chairman and senior partner in 1981, she broke the glass
ceiling as the first woman partner of Price Waterhouse anywhere in the world. Proving her mettle, she was elected
to a three-year term as member of the board of the Price Waterhouse World Firm.
The worldwide merger of Price Waterhouse with Coopers & Lybrand to create PricewaterhouseCoopers in 1998,
was a major boon to its local counterpart, further boosting its reputation in the financial services sector.
De la Paz-Bernardo was appointed president and CEO of the Social Security System soon after her retirement from
the firm in 2001. Continuing her pioneering streak, she became the first woman and first Asian president of the
Swiss-based International Social Security Association. Highly respected in both business and government circles,
de la Paz has received many an award from various bodies: PICPA Accountancy Hall of Fame, Outstanding Filipino
in Public Accounting, Outstanding Woman in Business, the Association of CPAs in Public Practice Life Achievement
Award, Distinguished University of the East Alumna, and Executive of the Year.
Jerry S. Isla, yet another achiever, was de la Pazs successor. Concurrently, Isla was president of the Association of
CPAs in Public Practice.
The company became Isla Lipana & Co. in 2005.
For his outstanding work in the field of accountancy, Isla received the ACPAPP Presidential Award, and the
Distinguished Lifetime Achievement Award from PICPA, both in 2006.
Tammy H. Lipana became the firms chairman and senior partner in 2006. A CPA topnotcher and cum laude
graduate of the University of the East, Lipana is an acknowledged tax expert who served as the Private Sector
Head of the Bureau of Internal Revenue Task Force Drafting EVAT Regulations, and is Chairperson of the Philippine
Chamber and Industrys Taxation Committee, and erstwhile president of the Tax Management Association of the
Philippines.
She is the recipient of the 2006 PICPA award for Outstanding CPA in Public Practice 2006, and the Outstanding
Alumna Award 2005 from the University of the East Alumni Association.
Under Lipanas watch, the company accelerated its participation in the BIR's tax education and information
campaign. Books were published to serve as easy reference guides to help accountants determine various
withholding tax and fringe benefits tax with which taxpayers must comply.
Judith V. Lopez became chairman and senior partner in 2009.
Isla Lipana & Co. is a Philippine member firm of the PwC global network.

Key Management

Alexander B. Cabrera

Chairman and Senior Partner

Alex is a CPA-lawyer and is a practitioner of both his professions. He secured his Bachelor of Science in
Accountancy in 1987 from Philippine School of Business Administration (PSBA), which in 2006 also recognized him
as one of its outstanding alumni. He obtained his Juris Doctor at the Ateneo de Manila University in 1994 while
working full time with our firm. He became a lawyer in 1995. Alex also attended a leadership and management
program at Harvard Business School in 2006.
His leadership skills were evident even at an early stage in his career. It only took nine years experience for him to
be admitted as partner of our firm, making him one of the fastest in career progression. The Philippine Institute of
Certified Public Accountants (PICPA) also recognized this feat by bestowing on him the Young Achiever Award in
1998 for his outstanding achievements in public practice. In 2006, PSBA named him as one of its outstanding
alumni.
Before reaching this pinnacle of success in his career with our firm, Alex became our managing partner of Tax
Services in 2006 and became Vice Chairman in 2009. He is also the managing partner of Cabrera Lavadia and
Associates, a law firm which he founded in 2002. He is also our firms General Counsel.
Alexs exposure in public practice lies in audit, tax, business advisory and legal services. His fortes are tax planning
and business mergers and acquisitions. Alexs client portfolio includes multinational and domestic companies in
diversified industries such as power and energy, consumer and industrial products, telecommunications, media,
financial services, real estate and mining, among others.

Roderick M. Danao
Assurance Managing Partner

Isla Lipana & Co. performs audit, taxation, advisory and Japanese
business services
We deliver quality services to our clients through our main office in Makati City and our branch office in Cebu. We
now have 21 partners and over 630 professional staff.

Our services
Isla Lipana & Co., the Philippine member firm of PwC offers an integrated, multi-disciplinary package of financial
and business services whether you are operating in the Philippines or have offices in different parts of the world. We
adhere to the highest quality standards and are committed to deliver innovative and responsive audit, tax, and
business solutions.

Assurance
This is the backbone of Isla Lipana & Co. Our assurance services deliver responsive audits tailored to the size and
nature of the clients business. Our audit strategy is a risk-based, top-down approach that focuses on the clients
business objectives and risks, and those that impact on financial reporting. We apply the full rigor of our global audit
methodology which provides a robust assurance process and upholds a high quality and distinctive audit that is of
global standards.

Tax
We perform various corporate and tax-related services that respond to the needs of your business to help minimize
your tax liabilities and meet your tax compliance obligations. We recommend options, solutions, and relief as
taxation becomes more complicated and costly. We offer advantageous and cost-effective strategies for optimizing
your taxes and duties.

Advisory
We have become our clients trusted allies in creating, acquiring, or financing a business; integrating acquired
business into current operations; enhancing performance; improving management and control; dealing with crises;
or restructuring and realizing value. We work together with your people to implement your strategy and provide
advice on financial, analytical, and business process skills along the way.
All these major services help you create stakeholder value, build trust, and communicate with the marketplace.

Building trust: Working in ways that give you

greater reliability- ASSURANCE
The financial statement audit has never been more important. There is stronger clamor for good
corporate governance and greater reliability of financial reports. This has influenced reforms in the
regulatory landscape and significant changes in financial reporting standards.
The impact of the changes is embedded in our audit methodology and we make sure our clients fully
understand its effects.
We apply the full rigor of our global audit methodology (called PwC Audit) to our clients and tailor it to the
size and nature of their business. This methodology provides a robust assurance process that upholds a
superior and distinctive audit that is of global standards.
We adhere to the PwC independence rules which are generally more stringent than local independence
rules.
Risk-based, top-down approach

Our risk-based, top-down audit approach provides the necessary framework that increases audit
effectiveness and efficiency, and clearly responds to a clients needs. We get an in-depth understanding
of the clients business and industry, the internal control environment, overall business objectives and
the risks associated with those objectives.
Combining these factors with our independently formed expectations, we focus on the risks that will
impact on financial reporting and our audit responsibilities. We plan and perform assurance work so that
the audit risks will be limited to an acceptable level that, in our professional judgment, is appropriate to
express an opinion on the financial statements.
As external auditors, we have a role to play in good corporate governance because we interact with the
audit committee. Some of the more important benefits of our interaction are:

For those in charge of corporate governance we provide fresh perspectives towards best
practices in corporate reporting and governance useful in discharging governance responsibilities and
building public trust.
For those in charge of operations and administration we enhance their sense of responsibility
and ownership of day-to-day processes with the improved internal control environment as a result of the
audit.
Our commitment to provide quality financial reports that add value is a constant. This enables us the
convergence of information needed by those in the corporate reporting supply chain and governance to
understand companies in detail and in depth. To maintain this high grade, we train our people with the
right combination of industry-specific issues, global perspective, local implementation, and forward
looking approach, with a deep insight on international and local accounting and auditing standards.
Some of our main Assurance services:

Statutory and regulatory audit.

Review of controls and compliance to create parameters in financial performance and operations
of a business, risk exposure, and use of resources.
Independent validation or assessment of financial and non-financial data.
Public services audit and related services for government, education, and non-profit
organizations.

Tackling today's challenges: Our Advisory Services

Our Advisory practice in the Philippines
PricewaterhouseCoopers Consulting (Philippines) Inc. (PwC Consulting Phils.) is a Philippine member firm of the
PwC global network and a part of the Southeast Asia Consulting group.
Isla Lipana & Co. is also a Philippine member firm of the PwC global network. Aside from assurance and tax
services, Isla Lipana & Co. also renders deals-related advisory services.
Both Isla Lipana & Co. and PwC Consulting Phils. are committed to provide excellent and distinctive services to its
clients. For 91 years, we stick to the highest quality standards in delivering audit and assurance, tax and advisory
services within and outside the Philippines.

How our Advisory people can help you

Growth and change are two realities that no business can afford to ignore. Sustainable strategies that help your
business innovate and grow while reducing costs and leveraging talent are just as essential as having the agility
and creativity to respond to rapidly changing environments.
By taking time to understand your business and the issues and challenges you are facing, our Advisory teams use
local and global knowledge to help you challenge conventions and introduce and deliver strategies that work
specifically for you.

Advisory services

Consulting- We help organisations to work smarter and grow faster. We consult with our clients to
build effective organisations, innovate & grow, reduce costs, manage risk & regulation and leverage talent. Our
aim is to support you in designing, managing and executing lasting beneficial change.

Deals- We help clients do better deals and create value through mergers, acquisitions, disposals
and restructuring. We work together with them to help develop the right strategy before the deal, execute their
deals seamlessly, identify issues and points of negotiation and value, and implement changes to deliver
synergies and improvements after the deal.

Our competencies in Deals

Financial due diligence review, vendor assistance, vendor due diligence review, commercial and market due
diligence review, valuation consulting, structuring services, feasibility studies and market research, post deal
services, M&A advisory, fundraising advice, bid support services, publicprivate partnership advisory, business
recovery services, dispute analysis and investigations.

Upholding what is right: What are your tax concerns?

We consider the needs of your business and the government with the end in view of upholding what is right.
Tax is a significant cost in business. As such, properly managing and controlling inherent tax risks is a must. And to
keep up with tax developments and have a clearer understanding, top businessmen seek professional tax advice to
help them manage tax risk, control costs, and seize tax planning opportunities.
To develop a comprehensive tax strategy for your business, we cover various considerations relevant to your
particular business, i.e., industry, markets, finance, economics, and government regulations. We take a consultative
approach rather than focus on compliance to identify all your risks.
Increasingly, companies require a variety of accounting, tax, and business services to manage risks and gain
competitive advantage. Our tax professionals can provide these diverse disciplines to help you minimize tax
liabilities and meet compliance obligations. We can be your advocates with tax authorities to support a tax position
that will work to your advantage. And we can give you tailored, implementable and defensible tax planning
structures.

Responsiveness unlike any other

We specially package business and tax advisory services for our clients based on their needs. This is a better way
of handling tax compliance that makes us achieve their business objectives.

We have made it easier for companies, whether large or small, to lessen their tax problems and meet tax
compliance obligations.
We deal with main taxes affecting all businesses, and those in difficult areas such as international tax, expatriate
tax, and value-added tax.
Our tax colleagues in other PwC firms worldwide work with us in giving professional and timely advice on tax issues
that crop up in every area where there is an international transaction.

Range of tax services

Tax planning
We assist in planning and structuring tax efficient business transactions, including those that happen overseas, for
corporate and individual taxpayers.

Tax opinions and rulings

We advise on tax implications of business transactions and proposed corporate actions, including proposed
legislation and important developments that may affect business; and in securing private rulings from the Bureau of
Internal Revenue (BIR).

Tax assessments and claims for tax refunds

We represent clients at the BIR to challenge findings and to process claims for tax refunds/tax credits.

Tax returns
We help comply with corporate and individual tax obligations.

Tax audits
We do in-depth studies to identify possible tax problem areas and review the tax position in a given situation or
transaction.

Start-up issues for foreign investors

Our Tax team also assists foreign investors and organizations in tackling main issues in their operations related to
their investments in the Philippines. Our team also helps them on how best to take advantage of the wide range of

investment incentives available. We have ample experience in advising clients on all aspects of setting up a
Philippine operation, and in dealing with issues such as:

Determining an appropriate fiscal and capital structure for the organization.

Forming the company and branch, including registering with relevant government agencies.
Identifying incentives that may be available, and preparing applications to proper government agencies.
Doing feasibility and location studies.

Legal services
For engagements that call for legal services, we can refer our clients to Cabrera Lavadia & Associates, a connected
firm to PwC global legal services network which specializes in tax consultation. This firm handles corporate services
work, such as business registrations, government compliance, mergers, acquisitions, insolvency corporate
restructuring and corporate secretarial services. It also offers immigration and labor practice, legal due diligence
reviews and court cases.

Japanese business development

Our Japanese Business Development group assists Japanese firms operating or preparing to operate in the
Philippines. They make sure that we serve our Japanese clients despite the differences in cultures, languages, and
business practices.

Customs and international trade

The Worldtrade Management Services (WMS) is a regional customs and international trade consulting practice of
PwC.
The WMS practice in Asia has a team based in the region, including Japan, China, Hong Kong, Indonesia, Malaysia,
and Thailand. They come from different sectorsincluding ex-senior government officials, customs officials, tax
lawyers, financial accountants as well as people from the private sector who have experience in logistics and trade.

Modern mobility redesigning your mobility experience

Mobility strategies for the next decade will need to be sophisticated, agile and adaptable to deal with growing
deployment demands, but tax and immigration requirements often stand in the way, producing complex and
perplexing challenges. Leading businesses know they need to closely align mobility strategies to business plans
and wider Talent management strategies.
Mobility opportunities are key to attracting, developing and retaining talent - but diverse preferences and
expectations all need careful management. Read more about how PwC can help manage your mobility program and
what the market is saying about our HRS capabilities.

Tax compliance And payroll

Corporate (pe) risk

Immigration

Social security

The #1 job of the global mobility function is to deploy talent to the assignment location in as cost effective and
efficient way as possible. Are you thinking about how to best align your mobility process to meet the needs of your
business strategy while keeping costs down? Are your assignment policies flexible enough to cope with different
assignment patterns, a rapidly changing workforce diversity, and a growth in new assignment locations? Does your
mobility function make effective use of technology? PwC can help you address these challenges and future proof
your mobility function and processes.

Innovating our ways for you. Creating the value youre

looking for
Helping our clients achieve sustainable growth and deliver value to
their stakeholders is what we do best.
Isla Lipana & Co., the Philippine member firm of the PwC global network, helps organisations and individuals create
the value theyre looking for. Were a network of firms in 158 countries with more than 180,000 people who are
committed to delivering quality in assurance, tax and advisory services.
Isla Lipana & Co. is PwC in the Philippines
PwC refers to the Philippine member firm, and may sometimes refer to the PwC network. Each member firm is a
separate legal entity. Please see www.pwc.com/structure for further details.
We at Isla Lipana & Co. have provided professional services in the Philippines for 91 years. We stick to the highest
quality standards in delivering audit and assurance, tax and advisory services within and outside the Philippines.
Our clients include government agencies and leading corporations, both local and foreign, across different
industries. We mainly serve these industries:

Consumer and industrial products and services.

Financial services.
Technology, information communications and entertainment.
Other services and emerging enterprises.
Our diverse team of experienced professionals includes accountants, tax advisers, systems analysts, economists,
human resources professionals, project development managers, industrial engineers, and investment advisors.
Our people are active in various professional, public and private sector organisations and participate in public
forums involving taxation, investment incentives and advocacy issues. We make sure we keep up with the latest
developments so that we can give clients informed advice on different issues that might affect their businesses.

Isla Lipana & Co. performs audit, taxation, advisory and Japanese business services
We deliver quality services to our clients through our main office in Makati City and our branch office in Cebu. We
now have 21 partners and over 630 professional staff.

Assurance
Financial statement audit, regulatory compliance and reporting, assistance on capital market transactions, financial
accounting, independent controls and systems process assurance, internal audit.

Tax
Planning, opinions and rulings, assessments, audits, availment of incentives, claims for refund, business services,
global compliance and accounting, international assignment solutions, customs and international trade.

Advisory
Business recovery services, corporate finance, due diligence, finance function reviews, business forensics,
operations reviews, change management, process streamlining and documentation, risk management, business
and market strategy, information technology consulting, HR consulting, transaction services, valuations.
PwC is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate
and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal
entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to
clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the
exercise of their professional judgment or bind them in any way.

Mr. Alexander Cabrera

Chairman and Senior Partner

Ms. Rossana S. Javier

Advisory Managing Partner

Mr. Zaldy D. Aguirre

Assurance Partner

Mr. Aldie P. Garcia

Audit Partner

Mr. Jan Michael L. Reyes

Audit Partner

Controversies[edit]

Willie Nelson[edit]
In 1990, the US Internal Revenue Service seized most of the assets of Willie Nelson, claiming he
owed $32 million in back taxes, including penalties and interest. He sued Price Waterhouse,

contending that they put him into tax shelters that were later disallowed by the IRS.[43] The lawsuit
was settled for an undisclosed amount.[44]

American International Group Inc.[edit]

BusinessWeek said that PwC was American International Group Inc.'s auditor through years of
"questionable dealings." AIG on 30 March 2005 said that deals with a Barbados-based insurance
company, for instance, may have been incorrectly accounted for over the past 14 years, because an
AIG-affiliated company may have been secretly covering that insurer's losses. [45]
BusinessWeek said that PwC appears to have "dropped the ball" on the deals between AIG
and Berkshire Hathaway Inc.'s General Re Corp. General Re transferred $500 million in anticipated
claims and premiums to AIG. BusinessWeek asked: "Did the auditor do its job by verifying that AIG
was assuming risk on claims beyond the $500 million, thus allowing AIG to account for the deal as
insurance? That's Accounting 101 in any reinsurance transaction."[45]

ChuoAoyama Suspension[edit]
From 2000 to 2006, PwC's affiliate of assurance service in Japan was ChuoAoyama Audit
Corporation ( Ch-Aoyama Kansa Hjin ). In May 2006, the Financial Services
?

Agency of Japan suspended ChuoAoyama from provision of some statutory auditing services for two
months following the collapse of cosmetics company Kanebo, of which three of the partners were
found assisting with accounting fraud for boosting earnings by the company of about $1.9 billion over
the course of five years. The accountants got suspended prison terms up to eighteen months from
the Tokyo District Court after the judge deemed them to have played a "passive role" in the crime.
[46]

The suspension was the first ever imposed on a major accounting firm in the country. Many of the

firm's largest clients were forced to find replacement auditors before the suspension began that July.
[47]

Shortly after the suspension of ChuoAoyama, PwC acted quickly to stem any possible client attrition
as a result of the scandal. It set up the PricewaterhouseCoopers Aarata, and some of
ChuoAoyama's accountants (but most of the international divisions) moved to the new firm.
ChuoAoyama resumed operations on 1 September under the Misuzu name. However, by this point
the two firms combined had 30% fewer clients than did ChuoAoyama prior to its suspension.
[48]

Misuzu was dissolved in July 2007.[49]

Tyco settlement[edit]
In July 2007, PwC agreed to pay US$229 million to settle a class-action lawsuit brought by
shareholders of Tyco International Ltd. over a multibillion-dollar accounting fraud. The chief
executive and chief financial officer of Tyco were found guilty of looting $600 million from the
company.[50]

Satyam case[edit]
In January 2009 PwC was criticised,[51][52][53][54][55][56] along with the promoters of Satyam, an Indian IT
firm listed on the NASDAQ, in a $1.5 billion fraud.[57] PwC wrote a letter to the board of directors of
Satyam that its audit may be rendered "inaccurate and unreliable" due to the disclosures made by
Satyam's (ex) Chairman and subsequently withdrew its audit opinions. [58] PwC's US arm "was the
reviewer for the U.S. filings for Satyam."[59] Consequently, lawsuits have been filed in the US with
PwC as a defendant.[60] Two partners of PricewaterhouseCoopers, Srinivas Talluri and Subramani
Gopalakrishnan, have been charged by India's Central Bureau of Investigation in connection with
the Satyam scandal. Since the scandal broke out, Subramani Gopalakrishnan has retired from the
firm after reaching mandatory retirement age, while Talluri remains on suspension from the firm. [61]

Yukos prosecutions[edit]
In November 2010, The New York Times reported that PwC had been assisting the Russian
Government with prosecutions in relation to alleged tax evasion at Yukos stating "...Then, in 2007,
with the prospect of parole on the horizon, the same prosecutors with what appears to be the
complicity of PricewaterhouseCoopers, Yukos's longtime accounting firm indicted the two men
(Mikhail B. Khodorkovsky and Platon Lebedev), again, bringing a new round of Kafkaesque
charges."[62]
A cable from the US embassy in Moscow stated that the trial was politically motivated and that a
deposition in a US court by PricewaterhouseCoopers may show that PwC was pressured by the
Russian government to withdraw its prior Yukos audits. An embassy source noted that if the audits
were not properly withdrawn it "would greatly tarnish PWC's international reputation." [63] Russian
authorities were investigating PwC for tax evasion, but suspended the investigation once PwC
withdrew the Yukos audits.[64]

Global Trust Bank Ltd and DSQ Software[edit]

India's accounting standards agency ICAI is investigating partners of PwC for professional
negligence[52] in the now-defunct Global Trust Bank Ltd. case of 2007. Like Satyam, Global Trust

Bank was also based in Hyderabad. This led to the RBI banning PwC from auditing any financial
company for over a year.[65][66][67] PwC was also associated with the accounting scandal at DSQ
Software[68] in India. Following the Satyam scandal, the Mumbai-based Small Investor Grievances
Association (SIGA) has requested the Indian stock market regulator SEBI to ban PwC permanently
and seize its assets in India alleging few more scandals like "Ketan Parekh stock manipulations." [69]

Transneft Russia case[edit]

The construction of the ESPO (East Siberia-Pacific Ocean) pipeline by Transneft was estimated to
cost in excess of US$13 billion. A leaked report of the Audit Chamber of the Russian Federation
indicated that the total amount stolen and siphoned from the company during construction through
various mechanisms and schemes reaches up to USD 4 billion. [70] A Moscow Times editorial stated
that one of the chamber's auditors attempted "damage control" by saying in effect, "Yes, money was
stolen, but not as much the media reported."[71] PricewaterhouseCoopers (PwC) was Transneft's
auditor and denied wrongdoing saying "We believe there are absolutely no grounds for such
allegations, and we stand behind our work."[70]

House of Lords inquiry in the UK[edit]

In 2011, a House of Lords inquiry specifically criticized PwC for not drawing attention to the risks in
the business model followed by Northern Rock, a client of the firm, which was rescued by the UK
government during the financial crisis.[72]

JP Morgan Securities audit[edit]

In 2012, the Accountancy and Actuarial Discipline Board (AADB) of the UK fined PwC a record
1.4m for wrongly reporting to the Financial Services Authority that JP Morgan Securities had
complied with client money rules which protects client funds. The accountants neglected to check
whether JP Morgan had the correct systems in place, and failed to gather sufficient evidence to form
opinions on the issue, and as a result, failed to report that JP Morgan failed to hold client money
separate from JP Morgan's money. It is the greatest penalty administered to a professional
accountancy firm in the UK.[73]

World Bank Favouring for Water Privatization in Delhi [edit]

PricewaterhouseCoopers was found to be unethically favored by the World Bank in a bid to privatize
the water distribution system of Delhi, India, an effort that was alleged as corrupt by investigators.
[74]

When bidding took place, PwC repeatedly failed in each round, and the World Bank in each case

pressured PwC to be pushed to the next round and eventually win the bid. The effort at privatization

fell through when an investigation was conducted by Arvind Kejriwal and the non-governmental
organization (NGO) Parivartan in 2005.[74] After submitting a Right to Information (RTI) request,
Parivartan received 9000 pages of correspondence and consultation with the World Bank, where it
was revealed that the privatization of Delhi's water supply would provide salaries of $25,000 a month
to four administrators of each of the 21 water zones, which amounted to over $25 million per year,
increasing the budget by over 60% and water taxes 9 times.[75] [76]
The Delhi Jal Board (DJB), which administers the water system of Delhi, was first approached by
Parivartan in November 2004, following a report by the newspaper The Asian Age, where the
scheme was revealed to the public for the first time. [75][76] The DJB denied the existence of the
project, but after an appeal, the RTI request was granted. The documents revealed that the project
began in 1998, in complete secrecy within the DJB administration.[75][76] The DJB approached the
World Bank for a loan to improve the water system, which it approved, and the effort began with a
$2.5 million consultation loan. The Delhi government could have easily provided the money, and the
interest rate of 12% that was to be loaned by the World Bank could have been raised on capital
markets for 6%.[75][76] Following the consultation, 35 multi-national companies bid, of which six were
to be short listed. When PwC was in 10th place, the World Bank said that at least one company
should be from a developing country, and since PwC made the bid from its Kolkataoffice, it was
dubbed an "Indian" company, and its rank was dropped to 6th.[74] When PwC failed in the second
round, the World Bank pressured the DJB to start over with a fresh round of bidding. Only one
company succeeded in the new round that was not PwC, and the World Bank had the lowest marks
from an evaluator thrown out. The contract was awarded to PwC in 2001. [77] Following the
investigation by Parivartan, a campaign was waged by Kejriwal, Aruna Roy, and other activists
across Delhi, and the DJB withdrew the loan application to the World Bank. [74][75][76]

Cattles[edit]
Cattles plc has brought a legal action against PwC in the UK in respect of the 2006 and 2007 audits
claiming that they had failed to carry out adequate investigations.[78] Cattles, a UK consumer finance
company, later discovered control weaknesses which caused its loan book to be materially
overstated in its balance sheet; having been listed as a FTSE250 company, it subsequently lost its
listing. PwC has disputed this legal claim.[79]

PCAOB report on audit inspections[edit]

The Public Company Accounting Oversight Board (PCAOB) report on audit work carried out by PwC
in 2012 in respect of US public companies identified significant deficiencies in 21 of 52 audits
examined.[80][81]

Quinn Insurance[edit]
PwC Ireland is being sued by the joint administrators of Quinn Insurance Limited for 1bn over
alleged negligent auditing.[82]