Mattel Identifies Financial Controls to Improve, Stands by PwC (1)

Mattel Inc. stood by its beleaguered auditor PwC LLP but told investors that it is trying to do a better job in disclosing accounting errors.

The El Segundo, Calif.-based toymaker—in a special morning call Nov. 15 with securities analysts focused on its accounting issues—emphasized that PwC, also known as PricewaterhouseCoopers, was fit to continue as its external auditor after the firm replaced the lead audit partner and other audit team members.

Controller Yoon Hugh said the company was “moving rapidly” to improve its controls and revise training related to auditor independence. But she cautioned that it will take time ...