• Register
Return to: Home > News > PCAOB fines PwC Mexico $100,000 over violation of auditor independence

PCAOB fines PwC Mexico $100,000 over violation of auditor independence

The US Public Company Accounting Oversight Board (PCAOB) has censured PwC, imposing a civil money penalty of $100,000 on the firm. PwC  SC, the auditor’s Mexican firm signed an engagement letter with Banco Santander Mexico in June 2016. However, at least six of PwC Mexico’s partners had personal financial relationships with the bank.

In addition to the fine, the PCAOB  is requiring PwC to take measures to establish, implement, and monitor policies and procedures to provide reasonable assurance of compliance with auditor independence requirements and with audit committee communication requirements.

The six partners were located in the office where the lead audit engagement partner for the engagement primarily practiced, so they were ‘covered persons’ and three of the six partners were in prohibited debtor-creditor relationships with Banco Santander Mexico.

Although the debtor-creditor relationships were discovered by PwC and unwound by September 2015, uninsured brokerage interests were not immediately identified and were not unwound until approximately June 2018, two years after the engagement letter. During those two years, the firm issued audit reports on the bank's 2016 and 2017 financial statements and in both audit reports, the PwC had affirmed that it was independent of the bank.

Top Content

    Brazil: regulation and technology form basis for recovery

    Opportunities in the capital markets and the ever-growing influence of technology are expected to have a significant impact on the Brazilian accounting profession over the next 12 months, writes Paul Golden.

    read more

    Mentoring support and the opportunity to delegate

    Jon Lisby will be known to many from his former role as CEO of Kreston International. Here, he explains the background to his new venture, Global Alliance Advisory Services (GAAS), and how he aims to offer support to alliance CEOs.

    read more

    Global by name, global by nature

    Stephen Heathcote became chief executive officer of PrimeGlobal on 1 June 2019. Robin Amlôt met him to discuss the various new challenges that he has taken on, and his ambitions for the association.

    read more

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.