PwC Bolsters Audit Independence Amid SEC Investigation

PwC LLP, stung by a recent $7.9 million SEC settlement, has taken multiple steps to showcase and strengthen the independence of its auditing team from its audit clients.

Among them: new compliance checks, more auditor training, policy changes, and disciplinary action for supervisors responsible for those involved with the prohibited services. Some new checks are designed to detect “scope creep”—add-on work that stretches the bounds of a typical financial statement audit.

The moves aim to strengthen the Big Four firm’s independence and compliance with federal conflict of interest rules intended to prevent the behavior PwC is ...