PricewaterhouseCoopers says no proceeding or determination was made as to any breach of its rules of professional conduct regarding its audit of Clico by the Institute of Chartered Accountants (ICATT).
The company made the comment yesterday in response to a T&T Guardian article headlined: "UK Forensic Probe Raises Issues Over PwC /Clico Audit." The article highlighted the fact that ICATT was moving to initiate disciplinary proceedings against PwC, after a forensic accounting audit by English firm FTI, raised concerns about how PwC had conducted its audit of the insurance giant in 2007. The article pointed out that ICATT was forced to shelve the action after an inquiry was ordered into the collapse of Clico in 2009.
In a release yesterday, PwC TT's spokesman, Sean Ramirez, said: "The rules of ICATT provide clear and unequivocal guidance that neither the existence of an investigation, nor the convening of any proceeding are to be made public or published, so as to avoid the prejudice and irreparable harm to the reputation and goodwill of a member absent any finding, in whole or in part, that there was a failure to meet professional standards."
Ramirez acknowledged an independent review of the firm's audit work in respect to Clico's 2007 financial statements had been done on behalf of ICATT back in 2009. He said the firm never saw the FTI report, nor did it have any knowledge of its contents or views expressed in it. He said PwC co-operated fully with ICATT during the review and was not given any opportunity to comment in response to any of the report's content.
Ramirez said the confidentiality of the October 2009 report ought to have been respected, particularly given that there have been no findings by ICATT of any failure by PwC to adhere to professional standards.
Ramirez noted that PwC was assessed by the Association of Chartered Certified Accountants (ACCA), an independent and competent third party that performs reviews in several countries, and its quality standards were found up to all professional standards. He added that in 2010, PwC TT also received the prestigious "quality checked" award from the ACCA for applying best practices in quality assurance procedures.
Ramirez reaffirmed that PwC TT was committed to worldwide business standards and operates within a framework of international best practices."Each partner and employee is accountable for upholding the PwC brand and its core values of teamwork, excellence and leadership," he said.
"Our partner and staff development and evaluation systems along with clear policies and procedures guide us in achieving this. We implement and maintain the highest standards of quality control that provide the basis for creating value for all stakeholders."
