PwC announces disclosure and governance changes ahead of review
The big four firm will adopt ASX Corporate Governance Principles and appoint three independent directors in response to the Ziggy Switkowski review.
PwC has announced a range of changes to improve its corporate governance as it prepares for the release of Dr Ziggy Switkowski’s independent review this afternoon.
Dr Switkowski was appointed to undertake a review into PwC’s governance, accountability and culture back in May following revelations that a PwC partner had leaked confidential tax information from the government in order to help its multinational clients restructure.
As part of his review, Dr Switkowski conducted more than 90 consultations with senior leaders and partners and held 18 focus groups across PwC offices.
Ahead of the release of the report later today, PwC has announced it will “apply the ASX Corporate Governance Principles and Recommendations to the extent feasible” and will also appoint at least three non-executives including a non-executive chair in order to improve the firm’s governance and accountability.
The Corporate Governance Principles and Recommendations contain a range of principles focused on instilling a culture of acting lawfully, ethically and responsibly; safeguarding the integrity of corporate reports; making timely and balanced disclosure and laying solid foundations for management and oversight.
PwC said the ASX Corporate Governance Principles and Recommendations would provide the firm with a “strong corporate governance framework”.
The firm also announced it will publish comprehensive, audited financial statements by September 2025.
PwC Australia chief executive Kevin Burrowes said the publication of the Switkowski review is an important day for the firm.
“It marks a moment from which we, and others, can measure progress against our commitments to enhance the firm’s governance, accountability and culture,” said Mr Burrowes.
“From the top down we are committed to rebuilding and re-earning the trust of our stakeholders. We are committed to learning, changing and leading. This is our promise to our people, our partners, our clients and our communities.”
The announcements this week follow previous changes undertaken by the firm including the appointment of a new chief executive and management leadership team and the sale of the firm’s government consulting arm.
The divestment of the government advisory business to Allegro Funds saw the creation of a new standalone business Scyne Advisory, with PwC Australia and Allegro Funds finalising the deal in the past week.
Push to increase disclosure requirements for all large firms
As part of the PJC inquiry into the audit, assurance and consultancy industry, various stakeholders have called for increased reporting and disclosure requirements for large accounting firms not currently obliged to report.
The accounting body said the primary concerns relating to firm structure of the larger accounting firms are associated with reporting and disclosure requirements, especially given the size and impact of larger firms in the Australian and global economies.
“As such we believe it is appropriate that professional services firms of a certain size or presence should be subject to the same financial and transparency requirements, regardless of structure,” CPA Australia said.
“Therefore, we support the introduction of improved reporting and disclosure requirements for those larger accounting firms that are currently not obligated to report.”
CPA Australia said disclosures could include details of board and executive/partner remuneration, governance reports, mandatory reporting of material risks, related party disclosures or full general purpose financial reporting requirements.
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