After facing questions on its auditing practices post the Satyam accounting fraud, PricewaterHouseCoopers (PwC) has decided to restructure the top management of Pricewater House, its audit arm in India. This would include replacement of the top management in its Hyderabad office and setting up a new advisory board that would guide the existing management on strategy and actions.
The new advisory board will have five members, out of which only one would be from PWC, while the rest would be outsiders drawn from various fields. PW has asked that the PwC global network identify a senior partner from another PwC member firm to serve as the fifth member of the board. PW will also undertake a review of its work and process, a release said.
The audit firm will also appoint a new quality assurance and risk management head, who will be seconded to PW from another firm in the PwC network. It has also appointed a new leader, Sharmila Karve, for its national assurance practice. Karve has further appointed a new assurance leadership team under her.
Pricewater House had been auditing for the Fraud hit Satyam Computer Services. The decision to restructure the leadership comes in the wake of allegation and doubts being raised on the firm’s practices. The firm has already suspended the two audit partners who signed the Satyam balance sheets.
The firm has been taking various measures to protect its image in India as the firm has a large number of clients in the country.