PwC under investigation for involvement in Australian government plans leak

International consulting and auditing firm PricewaterhouseCoopers (PwC) has found itself at the center of a major scandal in Australia. Yesterday, May 11, the Ministry of Finance of the country statedthat the federal police may be involved in the investigation of the activities of the local PwC office. The investigation concerns the leaking of confidential plans by the Australian government, one of the auditor’s clients, for new anti-avoidance measures.

The day before it became known that one of the now former PwC partners shared this information with other employees and partners of the firm. PwC immediately launched an internal investigation, which resulted in the resignation of gone three senior PwC Australia employees, including CEO Tom Seymour.

However, the scandal was not limited to an internal investigation and resignations in the local branch. Australian Finance Minister Jim Chalmers named leaking confidential government plans through the auditor as a “shocking malfeasance”, and some members of the Australian Parliament called for the auditor to be stripped of all contracts with the government.

Why clients are increasingly choosing mid-level auditors – in the material “Kommersant” “”Big Four” got smaller”.

Evgeniy Khvostik