By Mark Maurer
The Public Company Accounting Oversight Board fined PricewaterhouseCoopers' Australia unit, saying it failed to disclose details about an investigation of the firm by the Australian Tax Practitioners Board in a timely fashion.
The Big Four accounting firm has been dealing with fallout from a tax scandal in Australia, where the local unit admitted to repeated failures of leadership and agreed to governance reforms after its staff leaked confidential government tax information to multinational clients. The Australian Tax Practitioners Board last year said it found that PwC Australia breached rules around tax advisory work and ordered it to provide compliance training.
PwC Australia on Thursday was ordered to pay $600,000 and take measures to strengthen its compliance with PCAOB requirements. It didn't admit or deny the PCAOB's claims.
Under PCAOB rules, audit firms are required to file a form to disclose significant events such as the start or end of disciplinary proceedings up to 30 days after they occur. PwC Australia didn't provide this disclosure in time or adequately ensure its compliance with related controls, the PCAOB said.
PwC Australia apologizes for its initial failure to report the incident, a spokesman said. "The firm has cooperated with the PCAOB during this process and has taken a number of steps to improve our policies and procedures related to the reporting requirements," the spokesman said. The firm also said it regrets the "sharing of confidential Treasury information and the associated governance and cultural shortfalls under past leadership."
Write to Mark Maurer at mark.maurer@wsj.com.
(END) Dow Jones Newswires
03-28-24 1354ET
