Analysis On Price Waterhouse Coopers Accounting Essay

The aim of this profiling is to carry on an analysis on PricewaterhouseCoopers ( PwC ) , to research how they operate the company and how the company is form over the old ages. The construction of PwC, the broad scope of services they provide, and schemes will be included in the profiling. There will besides be a comparing of PricewaterhouseCoopers and KPMG utilizing SWOT analysis to see the difference in their internal and external factors of the company. This profiling will besides include the debut, the codification of behavior and values of PricewaterhouseCoopers.

Introduction of PricewaterhouseCoopers

PricewaterhouseCoopers, besides known as PwC, was known to be the biggest accounting and concern consultancy house around the universe which provides industry-focused confidence, revenue enhancement and advisory services. PricewaterhouseCoopers earn a sum of US $ 26.2 billion worldwide grosss for twelvemonth 2009 and employed more than 163,000 people in 151 different states.

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PwC is besides the largest of the Big Four Auditor, besides KPMG, Ernst & A ; Young and Deloitte & A ; Touche. It was formed in 1998 when there is a amalgamation between the two Big Six accounting houses which are Price Waterhouse and Coopers & A ; Lybrand. PricewaterhouseCoopers was officially known as PwC on 20th September 2010 with the proclamation of trade name shifting which besides includes a freshly designed logo.

History of PricewaterhouseCoopers

PricewaterhouseCoopers was formed in 1988 from the amalgamation between the two Big Six accounting houses which are Price Waterhouse and Coopers & A ; Lybrand. Both companies were originated in London and besides have histories back from the 19 century. The ground for the merge is because of the increasing competitory from other accounting houses and the purpose was to vie more internationally in states such as China and Russia. In the recent history, spouses of PricewaterhouseCoopers approve the sale of consultancy concern to International Business Machines in 2002 and PricewaterhouseCoopers had officially shortened their trade name name to PwC in 2010.

History of Price Waterhouse

An comptroller, Samuel Lowell Price established his ain pattern during 1849 in London. Price, Waterhouse & A ; Co was known in 1874, by Samuel Lowell Price and Edwin Waterhouse after the leave of William Hopkins Holyland who is in the partnership in 1865. Price Waterhouse had gained some acknowledgment as an accounting house during the late 19th century, which creates a trade between United States of America and United Kingdom. Price Waterhouse universe house was formed in 1982, which creates a big professional consulting subdivision. In 1890, Price Waterhouse opened an office in New York and 1904 is the gap of an office in Liverpool by the British house and besides in other states which makes the houses continuously spread outing and holding partnership in different states. Having the advantages due to the enlargement, Price Waterhouse have the idea of amalgamation with Arthur Andersen in 1989, but it did non win because there are excessively many struggles like Arthur Andersen ‘s commercial nexus with the International Business Machines and Price Waterhouse ‘s audit of International Business Machines.

History of Coopers & A ; Lybrand

William Cooper started his ain pattern during 1854 in London. It became Cooper Brothers after seven old ages in 1861 when his three brothers joined him. William M. Lybrand and H. Montgomery together with the Ross brothers, Adam A. Ross Jr. and T. Edward Ross, established Lybrand, Ross Brothers and Montgomery during 1898 in United States of America. In 1957, Coopers & A ; Lybrand was formed by the amalgamation of Lybrand, Ross Brothers & A ; Montgomery, Cooper Brothers & A ; Co, and McDonald, Currie and Co which is a Canadian house. Some states which include Coopers & A ; Lybrand in United Kingdom merge with Deloitte Haskins & A ; Sells and it became Coopers & A ; Lybrand Deloitte in 1990. In 1992, it was renamed to Coopers & A ; Lybrand.

Overall, the trade for Price Waterhouse and Coopers & A ; Lybrand to unify allows both the houses to jump in front of their challengers in footings of their spouses and their grosss, and this will besides let them to supply their clients a wide scope of accounting and consulting services.

Structure of PricewaterhouseCoopers

PricewaterhouseCoopers was linked through the rank in PricewaterhouseCoopers International Limited and they were structured as a system of spouse houses. As PwC is pull offing its concern in many other states all over the universe, it is non easy to work together, and so they need an active planetary web. The construction of PwC enables its houses to work openly and outright for concerns in both planetary and local. In this manner, they are capable of functioning a big graduated table of clients, including both well-known and private companies, irrespective of the size.

The client battle squad is the most important to the success of PwC. The squad ‘s primary duty is to construct and spread out the relationship between the clients and themselves. They besides act as the decision-making authorization that decides whether the client ‘s demands are met. The PwC civilization is carried to younger professionals as the battle squad is where most of the professional development takes topographic point. Because of this, PwC web portions a common purpose, which is to help engagement squads to link with clients and besides steer the following coevals.

Administration Structures

Global Board: This board ‘s undertaking is to do certain the effectivity of the administration, defend PwC International Limited system, and have duty among them. Every four old ages, the members of planetary board are selected by all of the spouses internationally as they do non keep an external function.

Network Leadership Team: This squad ‘s function is to put the criterions for PwC to follow. They besides established schemes for their ain system.

Strategy Council: This council ‘s undertaking is to guarantee everyone agrees on the strategic direction and besides the orientation in the execution of schemes. The members of the council are largely seniors from different big houses of PwC.

Network Executive Team: This squad ‘s function is in charge of the service line and utile countries through PwC web and besides describing to the Network Leadership Team.

An efficient teamwork demands good interactions, being able to esteem one another and besides sharing. As the best solution is produce by working good together with both clients and co-workers.

We can accomplish excellence through betterment, cognition and sleight. Including adding values further than what is anticipated and besides maintaining our words.

The most of import points in leading are to possess bravery, honestness and vision. A leader needs to take clients, people, and ever have leading in mind.Code of Conduct of PricewaterhouseCoopers

PricewaterhouseCoopers manage its concern within the construction of appropriate professional criterions, codifications and ordinances together with its criterions and regulations. However, it was admitted that the criterions, regulations and ordinances administrate all the different types of behavior. Because of this, the Code of Conduct was introduced to all the people and houses in PricewaterhouseCoopers. The experience in PricewaterhouseCoopers can lift by following the Code of Conduct and showing the values.

Both the guidelines and the values in the Code are required for each individual in PricewaterhouseCoopers to cognize and understand. But by cognizing and understand might non be plenty, they need to hold duty and will to obey the Code and besides to assistance others in making the same. As there is n’t a Code that trade with every state of affairs which might meet, so the Code provides a broad scope of counsel, and as a consequence, the codification can non be an alternate for obtaining counsel on appropriate concern behavior.

Continuing the PricewaterhouseCoopers name

PricewaterhouseCoopers work towards to function clients who are competent to function, who worth their service and who meet the suited criterions of legality and honestness. They maintain the repute of professional capableness and unity so that their co-workers and client will go on to swear PricewaterhouseCoopers. When they are talking during a treatment, they merely province PricewaterhouseCoopers ‘s positions and non their ain, even if the audience would anticipate them talking as representative. They use the assets that belong to PricewaterhouseCoopers and to their clients suitably, and merely for authorized purposes.

Behaving professionally

PricewaterhouseCoopers provide professional services in understanding with the regulations and professional criterions. The confidential and privateness of clients must be respected and strive to supply service should non be less that the dedications. When there are troubles, they consult suited PricewaterhouseCoopers persons before moving. It is improper to accept of offer payoffs, and it is best to avoid struggles.

Respecting others

It is of import to esteem others, including co-workers, clients and people with who they do concern with just and courtesy. Balancing of work and private life is indispensable, and so to supply safe working environment for everyone. They are dedicated to continue a working environment which is free from unfairness and torment, and to see the assortment of work force as an advantage to be nurtured and developed.

Corporate Citizenship

PwC will merely take portion in any activities that benefits and has instruction values to communities and non something that is against human nature. It will run with regard to the jurisprudence, imposts and tradition for the houses in each different state. They are dedicated in contending against corruptness and fiscal offenses. PwC besides aims to cut down the impact to the environmental due to operations.

Our duties

It is the duty of every employee in PwC to follow the Code of Conducts and policies given by the company. Those who fail to follow will ensue in disciplinary action from the company. Policies of the host state should be followed when they are face with uncertainties on international assignments or concern behavior inquiries.

Model for Ethical Decision Making

Every employees of PwC must follow a guideline when doing determinations. This includes cognizing the state of affairs good, sing the options available, and the effects of taking that peculiar option. In this manner, the best option can be offered to the clients.

Sustained concern success “ Growth ”

Consistent superior client grasp “ Loyalty ”

Peoples “ Pride, Passion & A ; Purpose ”


Schemes of PricewaterhouseCoopers


Having good behavior is one of the schemes for PwC. It means to hold good interaction with clients and co-workers, esteeming one another, willing to dispute and accomplish success. They should cognize the restrictions and reflect on every action done. When there are different positions, all of them must be considered and utilize it to better and accomplish the aim. They need to accommodate to different behaviors and have a alteration in themselves for the house, non merely separately. Experience in PwC should besides be promoted to clients.

Peoples “ Pride, Passion & A ; Purpose ”

Peoples in PwC should hold “ Pride, Passion and Purpose ” . They can assist each other to accomplish ends by promoting being more passionate. The cognition possess could be use in the appropriate manner and accomplishing higher quality for themselves. It is besides of import to understand the chief intent of the calling. To supply a different experience, flexibleness and legerity will be addition.

Consistent superior client grasp “ Loyalty ”

It is of import to understand their clients and seting themselves in their client ‘s places. In order to do betterments, new thoughts are taken in and so service provided for chief clients and markets in the industry sectors will acquire better. By demoing clients the experiences in PwC, their trust towards them will increase.

Sustained concern success “ Growth ”

Continuing concern success is to hold growing in the company. PwC aims to accomplish higher one-year growing for audit and non-audit grosss by 2016. It can be done by holding more association with fiscal audit squads and doing tactical investings. They must besides take down down the cost of bringing and monetary value, better the boundary and to do all the staff to hold concern development mentality.

Comparison between PricewaterhouseCoopers and KPMG




PricewaterhouseCoopers, being the universe largest accounting company among 151 states, has the best leading among the Big Four audit houses, as they are dedicated to function as a force. With the broad scope of services offered, it leads to the addition of clients and the relationship with each other. Because of the spread outing of houses in many other states, there is planetary presence and the grosss they earn each twelvemonth are continually increasing.

KPMG have the ability to unite its member houses and convey investor ‘s credibleness. With the wide planetary range and big scope of services provided, it increases the grosss earn and it is besides dispersed across industries to cut down the exposure to concern and the hazard of economic rhythm. They besides have diversified concern portfolio which is the strength of the company.


After PricewaterhouseCoopers have cases, it caused the repute of the house to diminish adversely. In the Advisory Segment, the market portion is worsening which cause a lessening in net income. Sometimes they took a small longer clip to take determination and they are hapless in maintaining clasp of gifted people.

Because of judicial proceedings and the sloppiness of gross in audit pattern, it leads to the decrease in repute of trade name. The lacking of transparence will do clients to halt working with them. Some contracts are subjected competition and audit fees may hold an unfavorable impact cause by client concentration.


As PricewaterhouseCoopers is spread outing, there might be a opportunity of increasing growing in Asia-Pacific part, and besides to profit from the development of markets. Insurance Service Market may get down turning after that and through strategic acquisition, many things could be fulfilled. There might besides be an addition in the demand for conformity declarations.

As the markets are turning and developing, KPMG could profit from it. KPMG has become the new concern theoretical account for consultative services as the lifting disbursement on substructure impulse demands for them.

Having blessing of IFRS criterions early might promote demands for accounting and auditing services, and the alteration in capital demands will profit them excessively.


When the economic sciences of the planetary lag, it affects all confer withing concern, which is a menace to all of them. The estimating of auction rate might switch demands off from Large Four. Big Four are the four largest international houses and when all of them are competitory, it consequences in the force per unit area. The reorganising or failures of large entity might go a menace to PricewaterhouseCoopers. Equally good as easing the commanding limitation, this might do competition among houses.

KPMG might confront menaces where there is a lessening in planetary economic, fiscal market and trades market. The estimating of auction rate might besides switch demands off from Large Four. When easing the commanding limitation, it may do competition among houses and increase the competition force per unit areas. KPMG besides face menaces in the trouble in Merger & A ; Acquisition Pipeline.

Learning Contemplations

From this G902 Professional Profiling faculty, I learnt a batch which I have ne’er encountered or tried. I learnt the ways to make an analysis of a company. The chief illustration would be to make the SWOT analysis of the two companies which I did the comparing on. It was clear demoing the internal and external factors that affects the company ‘s operations. I besides learnt about the different things required for a company to be successful and how they managed to vie with their rivals.

I think the intent of making this profiling is acquire to larn and cognize more about the operations of a company and fix us on any profiling in the hereafter. There were some jobs that I face during this profiling, which make me gain the jobs and trouble about this faculty. But after this, I have gain a batch and this would be a great experience for me. In the hereafter, if I would necessitate to make profiling on any company once more, I would utilize what I have learnt from this faculty and the jobs I face to better and make a better profiling.


PricewaterhouseCoopers is a big house that provides good and big scope of services. They ever put their clients at the first precedence and would function together as a force. They would besides desire their employees to follow the values, codification of behavior and schemes in order to show the best public presentation. They measure success by client feedbacks and study consequences and seek to do betterments from it. The amalgamation of Price Waterhouse and Coopers & A ; Lybrand was a good pick as it leaps in front of their challengers and go one of the Big Four hearers.

Although they have failings and menaces, it did non blockade PwC from being successful, as they have schemes which are their strengths. KPMG is besides one of the Big Four hearers, but it was ranked lower than PwC in footings of their grosss earn. The construction of PwC is besides of import to their operations as they have many houses all around the universe. It is the different boards and squads which make PwC able to work outright for concerns in the planetary. I think that PwC will go on to be spread outing in the hereafter old ages and make their marks irrespective of the menaces they face.


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