PwC Ends Reform Monitoring Ahead of Schedule

PwC is winding up external monitoring of its internal reforms nearly a year early after meeting most of its promises to address cultural and governance issues, aiming to restore trust, but critics say it may be moving on too soon.

The intense scrutiny began after a major tax leaks scandal exposed serious lapses in PwC’s internal processes and governance. In response, the firm committed to 47 separate reforms, which included greater transparency, publishing audited financials and adding independent board members. The reform plan was overseen by an external law firm and initially expected to last until March 2025.

Instead, that process concluded this month. The monitoring firm, citing substantial progress, recommended an early end to the review. PwC acknowledged the reforms, noting that the only outstanding measure was allowing independent directors to form the majority of the board. Leadership at the firm views the outcome as a positive step forward, particularly in efforts to reset company culture and ethics.

However, some in Parliament say the assessment lacks independence and may create a false sense of closure. They argue it’s premature to remove oversight, especially as an Australian Federal Police investigation into former PwC partners remains ongoing. Observers also point out that the monitoring was not entirely arm’s length, as the reviewing firm was engaged by PwC itself.

While PwC hopes this signals the end of a troubled chapter, the fallout from the tax leak scandal continues to cloud its standing. It looks like the reforms are delivering structural improvements, but full public trust may still take time to rebuild.

Source: Australian Financial Review, PwC, PwC Viewpoint, Captial Brief