The Pwc Scandal Changes Everything

Breaches of auditor independence at PWC could lead to an overhaul of the Big Five

It all started with two letters, one to Coopers & Lybrand, and the other to the Securities & Exchange Commission, accusing Coopers' employees in a Tampa (Fla.) office of owning stock in companies while auditing their financial statements. Those letters set in motion what has become the most massive investigation ever of a U.S. accounting firm. The examination uncovered widespread violations at the world's largest accountant, PricewaterhouseCoopers. And while the SEC-ordered report on the investigation is barely six weeks old, it is already leading to major changes in the U.S. accounting industry.

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