Document Fragment View

Matching Fragments

D. Report of Disciplinary Committee Bench III, dated 2nd July 2018

61. In the prima facie opinion, the Director (Discipline) had arrived at the following findings:

• That the members of Price Waterhouse group had access to common resources, methodology, knowledge and expertise including audit methodologies, software and guidance, shared IT platforms, shared branding market materials, and they were also known to be sharing of industry specific knowledge and expertise. • An international audit methodology to serve domestic and multiple clients were being uniformly adopted by all firms part of the PWC group.
a. First allegation: In view of the Respondent firm(s), respective letter(s) stating that, "PwCIL's primary activities are to identify broad market opportunities and develop associated strategies, strengthen the network's internal product, skill, and knowledge networks; promote the PwC brand; and develop and work for the consistent application of common risk and quality standards by member firms, including compliance with independence processes" and "as a member firm of PwCIL, has access to the common resources, methodologies, knowledge and expertise of PwCIL, and other member firms. Such common resources and methodologies may include, for example, audit methodology, software and guidance, IT platforms and systems, branding, and marketing materials...", it has been alleged that the Respondent firm(s) were involved in securing professional business by means which were not open to a member of the Institute/Firm. Such an act on the part of Respondent firm(s) was alleged to be in violation of Item (5) of Part I of the First Schedule to the Act. b. Second allegation: It has been alleged that the Respondent firms) and their personnel were using the domain name in their email-ids identical to the name of the multinational entity, PwCIL and the same was also displayed in their visiting cards. It was stated by the firms that usage of such e-

d. Fourth allegation: It has been alleged that the Respondent firm(s), in their respective letter(s) had confirmed that the member firms of PwCIL had access to the common resources, methodologies, knowledge and expertise of PwCIL and other member firms. Such common resources and methodologies may include, for example, audit methodology, software and guidance, IT platforms and systems, branding and marketing materials and industry-specific knowledge and expertise, all of which help the firm in adopting international audit practices and methodologies to serve their domestic and multinational clients. For the services so rendered a payment is made by the member firm based on the actual and allowable cost not exceeding 2.5% of the firm's revenue. It was further stated that in general, as part of agreed cost arrangements, member firms of PwCIL bear the costs of the activities as mentioned above. Under such arrangements, based on the audited financial statement of the said Respondent firm (M/s Price Waterhouse Kolkata), for the year ended 31st March, 2009, the firm had remitted US$ 689,778.