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:
- A failure of the company to manage risk properly
- Lack of profitability for PwC
- Dissatisfaction with how PwC personnel are being treated.
For more on Auditor Resignations, see the below articles and papers:
- Auditor Resignations and the Importance of Monitoring Client Acceptance Risk - by James H. Irving and Paul L. Walker
- The Break-Up: Auditor Resignation or Dismissal - By L&W Capital Markets Group
- A Theory of Auditor Resignation - by Keith Bockus and Frank Gigler
- How and When Can You Resign From Audit? - by The Chartered Professional Accountants of Ontario