Independence

Essential to our business is the ability to maintain strict independence from the clients we audit. We continue to invest in infrastructure and systems to help PricewaterhouseCoopers (PwC) firms and their people comply with all relevant independence rules and regulations and with PwC’s own independence policies.

Since January 2005, use of our common Authorisation for Services system has become mandatory for all non-audit services to public interest audit clients. We have also introduced a mandatory independence training programme for PwC senior partners, service line leaders, and risk management and independence partners. More than 500 partners have already participated in this programme, which will be extended to the majority of partners and selected managers during fiscal year 2006.

We evaluate PwC member firms’ compliance with our independence policies and processes through a rotating inspection programme at the country level and through engagement quality reviews conducted by each line of service.