PwC Rejects Audit & Consulting Split, Forecasts Record Annual Revenue Of $50B

PricewaterhouseCoopers' global chairman said the firm would report record revenues of about $50 billion this year as he defended not going for an audit and consulting split.
In an interview with the Financial Times, Bob Moritz said that keeping the audit and advisory arms together was essential to attract staff. The benefits of the model outweighed the difficulty of managing the risk of conflicts of interest between the two divisions.
The biggest constraint on expanding the business was being able to hire the right people rather than access to capital or rules on conflicts of interest, said Moritz.
PwC was still finalizing its fiscal year results ending June 30 but expected to report that revenues rose by at least 10%, he said. "Just about every business unit is up significantly." The firm is expected to publish its global revenues in October.
Moritz declined to comment directly on EY's plans for a possible separation but said he did not think a break-up by a Big Four firm would threaten the viability of its audit business. "Do I see the risk of four going to three? No, that is not a risk that's on our radar screen right now at all."
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