Price Waterhouse Coopers

Memo
To: Potential Employees to the Price Waterhouse Coopers
From: Madison Farris, University of Southern Mississippi Accounting Major
Date: November 10, 2016
MF
Subject: Company Accounts and
Positions
Attached to this memo, is a fully detailed business report on Price
Waterhouse Coopers. With the background information provided showing the
ethical standards and practices of the company, it can truly help the decision
of potential employment.
Two major points of the report: the good and the bad. The good ranges for
the revenues made, to the benefits they give to potential employees. The
bad can range from the expenses they have, to the lawsuits that have been
filed against them.
I hope to fully expand the knowledge of the reader, to be able to make an
ethical decision of whether or not they may want to work for this company.

Price Waterhouse Coopers

Business Report 2016

Prepared by Madison Farris

Accounting Major at The University of Southern Mississippi

Report Distributed November 12, 2016

Prepared for
The Investors of Price Waterhouse Coopers

TABLE OF CONTENTS

Executive Summary
...
1
Introduction
.
...
2
The Companys Background .
....2
Coopers and Lybrand
..
.....2
Price Waterhouse ...
........3
Price Waterhouse Cooper
....3
Locations of PWC .
..4
Social
Media .............................................................................................................4
Revenues..
..5
Job Positions

...6
Benefits

7
Job Application

8
Diversity

..9

Lawsuits

9
Price Waterhouse Helping the World
.10
Accomplishments

.11

EXECUTIVE SUMMARY
Price Waterhouse Cooper is an international company that provides many
different services. Multiple companies merged together to form what it is
now. Most of the public know PwC through its high ethical standards,
customer care, and the different tools it has to help with career paths for
people of all ages.
The main services they provide are: Audit, Assurance Consulting, Tax
Services, and Risk Assurance.
The tools they provide for people to further their careers are: Personal Brand
Workbook, Online Quizzes, Accessible Resources about their company, and
Provides Current Events.
The Report Provided will examine eight things: PwCs Background, PwCs
Information, PwCs Revenue, Job Positions, Benefits, Job Application,
Lawsuits, and Ways PwC Help the World.

INTRODUCTION
Price Waterhouse Cooper is a multinational accounting company, that has a
strong foundation in furthering careers around the world. Many companies
focus on money, success, and expansion of the company. Although PWC may
focus on this as well, they continue to offer help to people outside of the
company. This report will provide information for anyone seeking potential
employment for PWC including: full details about the company and its
background, the revenues and expenses, the job positions, the pros and cons
of each job, ways to be hired on, reviews, lawsuits, and ways the company
helps others.

THE COMPANY AND BACKGROUND

Coopers and Lybrand
Accounting is not necessary if businesses arent making large sums of
money. So before 1890, there was no need. As stated in Reference for
Business, after the industrial revolution, machines started bringing more
profits to businesses. More profits for businesses means money became
harder to organize and keep up with. Because of this, accounting became a
necessity. William Lybrand, Edward and Adam Ross (brothers), and Robert
Montgomery started a small accounting firm in the middle of Philadelphia.
They worked long, intense hours and hired in help as they needed it. After
many years of the long hours and hard work, they merged to form Coopers
and Lybrand.
In 1902 after the rapid increase for the need of expansion, they opened an
office in New York City. Shortly after that, they opened a business in 1919 in
the District of Columbia. In 1924 the company merged with another
accounting company, Klink, Bean & Co. After the end of WWI the increase for
accountant increased rapidly. By 1929 they had opened companies in Berlin,
Paris, and London.
Coopers and Lybrand had many accomplishments. Some stated in Reference
for Business include:
Adam A. Ross became the first Audit in a Bank.
Robert Montgomery wrote the first accounting textbook.
o Montgomerys Auditing, helps create more efficient auditing.
By using this book throughout the history of the company there
has been less risk, and more effective audit test.
Partners of the firm gave night classes for accounting

Heavily pushed a night school of accountancy at the University of

Pennsylvania

Coopers and Lybrand was founded and started expanding throughout the
world. Coopers and Lybrand accomplished many things and changed the
future of accounting forever.

Price Waterhouse
Samuel Lowell Price forms an accounting practice during the years of 1849
and 1850 (NNDB 2014). Price was a leading auditing, accounting and
financial consultant company for the London Culture. According to PWCs
website timeline, in 1865 Price joined with Holyland and Waterhouse. After a
few months, Holyland left the company only leaving Price and Waterhouse
(Reference for Business). In 1916 the Price, Waterhouse & Co opened an
office in Petrograd. Throughout time, the companys expansion led to
opening an office in the city of New York in 1890. George O. May took on the
responsibility of running the American business. The American business
upheld the same ethical standards as the London Practice.
With every company in the world, though, there are flaws. Price Waterhouse
took many hits from companies. Being caught up in embezzlement and
lawsuits many companies needed someone to blame. For example, a big
drug wholesale tried to make a hit on them. A high official of the company
ran an embezzlement scheme with his brothers. Price Waterhouse followed
every regulation, and could not be blamed for this, but it did bring questions
up about how well one should trust PWH. After this lawsuit, along with others,
John C. Scroble brought in a new auditing procedure. Auditors were now
allowed more access to the companys files.

Price Waterhouse Coopers

In 1998, the official company Price Waterhouse Coopers was formed,
allowing many years of future employment and successful accounting
practices. The timeline below sums up all of the dates and important facts
listed above:

(Timeline, Created by PWC website)

(http://www.pwc.ru/en/about/history.html)

Locations
Price Waterhouse Coopers are located internationally. With over two-hundred
plus locations, no matter where one goes in life. There will always be a PWC
around.

(Created by PWCs Website) (http://www.pwc.com/gx/en/about/officelocations.html)

Social Media

Facebook
(https://www.facebook.com/pwcfanpa
ge/)
o The Facebook page is operated
by the New York company. The
telephone number listed for
this website is (646) 471
3000. The website has multiple
post a day explaining things
not only within the company,
but even about the rest of the
world. Keeping people of all
ages informed and educated. It
also gives a calendar of
upcoming events for people
who are interested in keeping
up with the company.
Twitter
(https://twitter.com/PwC_LLP)
o There are multiple twitter pages for Price Waterhouse Cooper.
There is a main twitter for the company, but also multiple others
for specific companies in specific countries. On the twitter for the
entire company there are over 20,000 tweets, and the twitter has
150,000 followers.
Other social medias are also available.
o LinkedIn(https://www.linkedin.com/company/1044?
trk=vsrp_companies_hero_name&trkInfo=VSRPsearchId
%3A5228695911479072170995,VSRPtargetId
%3A1044,VSRPcmpt%3Ahero)
o Instagram

REVENUES
The financial year for PwCs company ends in June, meaning the year of
2016s gross revenues have already been calculated. According to PWCs
website, the gross revenue was 35.9 billion. The world of technology grows
every day, and because of this PwCs revenue went up 7%.
As you can see from the chart, Asia leads with the most revenue from all of
PwCs locations. Next would be Australasia and Pacific Islands. The third
would be Central and Eastern Europe, and so on. From the American stand
point, we are ranked in the 6th spot for the most revenue.

Assurance, Advisory, and Tax are all part of

(http://www.pwc.com/gx/en/about/glob
the service line in PwC. Assurance
al-annual-review-2016/how-we-arecontinues to increase by 6% (15.3 billion
doing.html)
US$). PwCs website states that many of
(Created by PwCs Website)
their companys qualities are why they keep business. Some of the qualities
include: strength of their brand, innovation, the quality of their employees
and customers. Advisory had an 8.3% change at constant rate and also
continues to grow, holding one third of the companys revenues; and tax had
a 7.4% change at constant rate; for an overall change at constant rate of
7.3% as mentioned above. (PwCs Website) The following graph allows one to
see the growth percentage each year, starting in the year 2012 on the right.

(http://www.pwc.com/gx/en/about/global-annual-review-2016/how-we-aredoing/our-revenues.html) (Created by PwCs Website)

According to PwCs Press Room, FY16 global revenues rise to record
US$35.9 billion as PwC looks to future, there are over 223,000 workers for
the company reaching an all-time high. Also, with the revenue increasing the
company spent $500 million in quality and research development.
In the book, The China Strategy: Harnessing the Power of the Worlds
Fastest Growing Economy, Edward TSE explains how the Chinese are not to
be messed with. On PwCs website this book is listed as well because it really
helps with revenues and explaining how PwC is so successful.

JOB POSITIONS
Many jobs are available at Price Waterhouse Cooper. Accounting, Auditing,
Tax, and Finance jobs are available multiple places in the United State, along
with hundreds of other job openings in other countries. PwC makes it very
easy and accessible to find job openings by placing a list on their website.
(http://jobs.pwc.com/ListJobs/ByKeyword/accounting/)

At PwC, according to Glassdoor, accountants average base salary with any

experience is $64,070. After stock bonuses and profit sharing the total
compensation ends up around $67,784. This website allows to see any job
and a base of what the salary will be.

(Salaries found on Glassdoor.com) (https://www.glassdoor.com/Salary/PwCSalaries-E8450.htm?sort.sortType=BP&sort.ascending=false)

BENEFITS

There are many benefits of working with PwC. Some of the benefits listed on
Price Waterhouse Coopers website include:
Student Loan Paydown Every year the company promises to pay the
employee $1,200 to pay of their student debt. Because PwC hires
almost 11,000 fresh out of college graduates this year, this will be a
big hit for the company (CNN Money September 22nd, 2015)
Getting the book, The Essential Advantage: How to win with a
capabilities-driven strategy, is another benefit. This book asks
questions about your company, if its driven to be successful, if its
equipped to keep up with the market, and many more. By asking these
questions while working there, you can better your own job, as well as
the company. This book is a great example of how PwC runs their
business, along with how their ethical standards, hard work, and
determination have not perished over the years.
Annual Performance Bonus
Life and Accident Insurance
Mortgage Program
Tuition Reimbursement

Off-Time
Every employee of the PwCs gets ten paid holidays. Along with that, full
time staff receive 15 days of vacation time. Price Waterhouse Cooper also
allows more vacation days the longer you work at their company. Executive
employees get 22 days of vacation time (PwCs Website). Like many other
companies, PwC requires experience to move up on the chain.

JOB APPLICATION
The picture to the right is a screen shot from PwCs website giving reasons
why they are a good company to choose to work for. Applying for a job at
PwC is very simple and highly accessible.

There are four steps to applying for the

job at Price Waterhouse Coopers
according to their website:
1. Search for jobs by your school
2. Select a job and apply
3. Create and easy to remember
username and password
4. Complete the application
(PwCs Website)
PwC offers internships as well. The
variety of internships range from
training, to client experiences, shadow
experiences, community service, and
international intern experience. Through training, the company offers people

to develop
(PwCs Website) (http://www.pwc.com/gx/en/about/global-annual-reviewtheir
2016/who-we-are/our-people-in-numbers.html)
leading
abilities
and
technical skills. PwCs website motto for training internships are, Leaders of
the future through in-the-moment-coaching. Something fun that not many
companies offer is international intern experience. Through this type of
internship, you can study abroad by shadowing someone in another country.
As you learn you attend local training within certain groups, and you have a
one-week assignment abroad (PwCs website) Below is a chart showing the
number of employees throughout the entire international company.

DIVERSITY

Diversity is something that every company has, but PwC takes it all the way.
Written on the Gender Agenda, on PwCs website, there are 10 lessons the
company learned.
1. Tailor the business case; Then make it resonate.
2. Recognize there is no quick fix.
3. No leadership commitment, no accountability, no progress
4. Use data analytics in planning the programmers
5. Use data analytics in executing the programmer
6. One size does not fit all cultures
7. Embed D&I within organizational DNA
8. A focus on inclusion from day one
9. Recognize performance over presence
10.
Engage the masses
This graph represents some of the things the company has to increase
diversity, and make everyone within the company feel welcome.

(PwCs Website) (The Gender Agenda)

LAWSUITS
On August 18th, 2016 it was reported by Francine McKenna on Market Watch
that PwCs was in trial for three cases at once. PwC was accused of
neglecting audits. Not many cases against PwC actually make it to trial. The
trial has the potential to influence public perception of auditors, as well as
strategies used by the plaintiff lawyers that try cases against them,
regardless of the eventual verdict, as stated by Tom Rohback, Axinn Veltrop
and Harkrider. So almost always, PwCs settles out.

One of the first lawsuits was claimed by Taylor Bean, claiming over 5 million
dollars in damages.
Another lawsuit also found on the same article is the lawsuit made by were
filled by Colonial Bank. As they filed for bankruptcy they blamed PwC for
negligence as the auditor. Throughout the case, they claimed 1 Billion dollars
in damages. In February they will go to trial.
Another lawsuit was in 2007, that recently was just settled. According to
AccountancyAge, Price Waterhouse Coopers paid 2.3 million in fines for the
wrongdoing of audits to the financial statements of Cattles and Welcome
Financial Services Limited.
According to, The Law School Guys, Price Waterhouse v. Hopkins was
another major lawsuit. Being a Senior Manager, Hopkins felt she wanted to
become a partner for PwC. After being refused the promotion, she sued the
company for discrimination on her sex. At the time of the lawsuit, the
company had 662 partners. For that many partners, for only 7 of them to be
women, Hopkins was upset. After the case she was given a 25-million-dollar
contract. Everyone has different opinions, and you cannot mix those with the
facts, she was sometimes considered a hard worker; however, sometimes
she was considered harsh and hard to work with. Often times, as stated in
the article, she was told she should walk more femininely, talk more
femininely, dress more femininely, wear make-up, have her hair styled, and
wear jewelry.

PRICE WATERHOUSE COOPER HELPING

THE WORLD
Price Waterhouse Cooper joined with another firm to help other organizations
internationally receive the power of the Industrial Internet. By doing this, it
helps other organizations and companies improve things like their assets,
their growth, their revenues. It also allows less reliability, less risk, and less
work. Many countries in the PwC company have joined together to finally
make this dream come true. PwC helps to build apps and software that allow
other countries to use to get on track according to the press room article,
PwC and GE Digital Form Strategic Alliance to help organizations worldwide
harness the power of the Industrial Internet.
People of all ages can use PWC to move forward in their career paths. PWC
has many websites for younger students. On the websites, students can gain
knowledge of their strengths and weaknesses. By knowing this information,
students can figure out exactly what they need to do, and need to work
harder on to be successful. Students arent the only ones that benefits from
this. Middle age adults that are already working benefit as well.

ACCOMPLISHMENTS
PwC was just recognized by Capiolts as one of Market Maker leaders. PwCs
Global Advisory Leader, said: Its great to have been recognized in the
CapioIT report for our strength in customer satisfaction. Throughout the
article is continues to talk about PwCs customer satisfactions. All of this was
found in the article, Customer satisfaction is a clear differentiator for
Salesforce services, in the press room of PwCs website.
PwC wins Audit Innovation of the Year at the Accountant & International
Accounting Bulletin awards 2016, according to Press Room on PwCs
Website. Halo, PwCs data-auditing tool, is the winning factor. The award
received recognizes companies with innovation in auditing. Other things they
look for in the winner is a company that, has improved audit quality, or
added value to clients.
Price Waterhouse Cooper has had numerous awards according to their
website. Some of those awards include:

References:
Tse, E. (2012) The China Strategy: Harnessing the Power of the World's
Fastest-Growing Economy Basic Books.
Malhardi, C., Leinwana, P. (2010) The Essential Advantage: How to Win with a
Capabilities-Driven Strategy Harvard Business School Press.
Montgomery, R. (1998) Montgomery's Auditing New York: John Wiley and
Sons Ltd.
PWC (2016) Press Room Customer satisfaction is a clear differentiator for
Salesforce services (November 8 2016) http://press.pwc.com/Analystcitations/ALL/customer-satisfaction-is-a-clear-differentiator-forsalesforce-services/s/e35a06c6-1fcc-499d-b9ba-ec2016860a6e
PWC (2016) Press Room PwC and GE Digital Form Strategic Alliance to help
organisations worldwide harness the power of the Industrial Internet
(September 22 2016) http://press.pwc.com/News-releases/pwc-and-gedigital-form-strategic-alliance-to-help-organisations-worldwide-harnessthe-power-of-the-/s/383c8ea9-556f-4f8e-8d0c-c3da572bd64b
PWC (2016) Press Room FY16 global revenues rise to record US$35.9 billion
as PwC looks to future (October 3 2016) http://press.pwc.com/Newsreleases/fy16-global-revenues-rise-to-record-us-35.9-billion-as-pwclooks-to-future/s/0aa1e3ba-e996-440a-abd7-f3c9b78b4f7a
PWC (2016) Press Room PwC wins Audit Innovation of the Year at the
Accountant & International Accounting Bulletin awards 2016 (October
10, 2016)
Facebook PWC https://www.facebook.com/pwcfanpage/

McKenna (2016) PwC face 3 major trials that threaten its business
(November 10, 2016) http://www.marketwatch.com/story/pwc-facesthree-major-trials-that-could-put-firm-out-of-business-2016-08-12
Crump (2016) PwC fined 2.3m over Cattles audit (November 10,2016)
https://www.accountancyage.com/2016/08/31/pwc-fined-2-3m-overcattles-audit/
PWC (2011-2016) Price Waterhouse Cooper (November 10, 2016)
https://www.pwc.com/
Reference for Business PricewaterhouseCoopers - Company Profile,
Information, Business Description, History, Background Information on
PricewaterhouseCoopers (November 10, 2016)
http://www.referenceforbusiness.com/history2/10/PricewaterhouseCoopers.ht
ml
NNDB (2014) Samuel Lowell Price (November 10, 2016)
http://www.nndb.com/people/187/000205569/