Question

PwC agreed to pay $7.9 million to settle charges of independence violations because the firm (select all that apply):

a) Violated ethical guidelines
b) Demonstrated corporate responsibility
c) Committed financial fraud
d) Engaged in illegal practices

Answer 1

PwC paid $7.9 million to settle charges related to independence violations by violating ethical guidelines, which may suggest fraud or illegal practices depending on the specifics of the actions taken.

Step-by-step explanation:

PwC agreed to pay $7.9 million to settle charges of independence violations. The firm was alleged to have violated ethical guidelines, which are crucial in maintaining auditor objectivity and independence. These allegations suggest that PwC may have engaged in practices that compromised its independence from clients — a requirement for auditors to perform unbiased and objective financial assessments. Such violations can sometimes be seen as a form of fraud, although not every independence violation constitutes fraud in a legal sense. Engaging in illegal practices is a serious accusation that could arise from such situations if laws were broken in the process of violating independence standards.