PwC Announces Plans for IPO
Big Five firm PricewaterhouseCoopers announced on Thursday that it will spin off its consulting arm in an initial public offering. The firm will file the IPO with the Securities and Exchange Commission this spring, according to PwC spokesman David Nestor.
The speed with which this plan has been assembled is a direct result of the Enron situation, in which auditor Andersen has been criticized for providing both auditing and consulting services to the bankrupt energy giant.
"We recognize that there is a crisis of confidence in the profession and that there's a concern over the scope of services that firms such as ours provide," said Mr. Nestor. "We don't think that those concerns are real, but the appearance is real and the concerns are real, and that certainly influenced our timing."
A new name will be selected for the new consultancy which currently contributes 30 percent of PwC's global revenue.
In addition, PwC stated that it will endorse any future proposals to ban accounting firms from performing information technology consulting or providing internal audit services to audit clients.