The Big 4 accountancy firms in the US have admitted they broke the rules to protect the independence of their audit work hundreds of times, following the introduction of new regulations!
In the US regulators now require both staff and their immediate families to disclose all possible conflicts of interest and to make financial disclosures of their investments. The rules also ban employment and financial relationships with audit clients, that could affect independence at the firms.
In mid-January PwC revealed it had identified 129 breaches of the rules affecting 79 clients. However, it appears it missed one as independent inspectors found one more. Deloitte admitted late last year to almost identical numbers – 129 breaches with 78 clients in 2022 and 107 breaches with 53 clients in 2023.
