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Why Auditors Resign

Ever wonder why an auditing company would divorce a client?

Here's what John O'Connor, vice chairman of services at PricewaterhouseCoopers, had to say in early May of 2004 at a forum on auditor independence this week at NYU's Stern School of Business.

O'Connor gave the three primary reasons why his firm resigns as an auditor.
  1. A failure of the company to manage risk properly
  2. Lack of profitability for PwC
  3. Dissatisfaction with how PwC personnel are being treated.
In 2003, PwC split from clients about 500 times.