E&Y, PwC join KPMG in declaring themselves free of business ties to Iran
by AccountingWEB on
Ernst & Young and PricewaterhouseCoopers have declared that they no longer maintain business relationships with Iranian firms.
Their statements follow KPMG’s decision to cease all accounting activities with affiliates in Iran. These decisions have changed the risk equation for all public companies. United Against Nuclear Iran (UANI) calls on all public companies to disclose their Iran business in their regulatory filings to ensure compliance with U.S. Securities laws.
“Now that the world’s leading auditors have made clear that doing business in Iran is too great a risk, no responsible company should work in Iran,” said Mark D. Wallace, UANI president ambassador, regarding the responses from E&Y and PwC. “All public companies must disclose any and all business activities, including through foreign subsidiaries, in this dangerous country.”
In a letter dated April 7, UANI called on PwC to clarify its relationship with one of Iran’s largest accounting firms, Agahan & Co. PwC listed Agahan & Co. on PwC’s Web site as a “cooperating firm” with offices located in Iran.
In response, PwC wrote that:
“At one time, the Middle East member firm of the PWC network had a cooperating firm relationship with Agahan & Co. However, that relationship expired last year and has not been renewed…In any event, neither PWCIL nor any PWC member firm currently has a cooperating firm relationship with Agahan & Co…Please note that the link to the PWC Web site included on the UANI Web site is to an out-of-date Web page. The correct and current list of offices on the PWC Web site does not include any mention of Agahan & Co. or Iran…We have removed the outdated link to which you cite, as it is inaccurate, and we appreciate your bringing this inaccuracy to our attention…PWCIL [and PWC US] does not maintain an office or other business presence in Iran, has no relationship with Agahan & Co., and does no business in Iran.”
In a letter dated April 7, UANI called on E&Y to clarify its relationship with one of Iran’s largest accounting firms, Tadvin Co./Tadvin Management Consultants. E&Y’s Web site listed Tadvin as E&Y’s Iran based affiliate.
In response Ernst and Young wrote that it:
“[E]rroneously listed this firm in an outdated ‘Members and Affiliates’ list previously posted on our Web site, EY.com. In reality, Tadvin ceased to be a member in 2001. This list was corrected and replaced in February 2010…For the avoidance of doubt, Ernst and Young does not have an office, member firm, or affiliate in Iran.”
UANI thanked E&Y and PwC for their responses and clarifications.
You may like these other stories...
Hertz withdraws full-year forecast, cites accounting review, challengesRental car company Hertz Global Holdings Inc. said on Tuesday it is withdrawing its full-year financial forecast and expects 2014 results to be “...
Treasury prepares options to address tax inversionsDamian Paletta of the Wall Street Journal reported on Monday that US Treasury Department officials are assembling a list of administrative options for Treasury Secretary...
Deloitte CEO Joe Echevarria to retire to pursue public serviceMichael Rapoport of the Wall Street Journal reported that Deloitte LLP CEO Joe Echevarria plans to retire later this month to pursue his interest in public...
Upcoming CPE Webinars
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.