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This paper investigates the impact of the PricewaterhouseCoopers (PwC) merger in Australia on existing and potential clients of the new merged firm. From prior theory it is expected that some existing clients may have an incentive to switch away from a newly merged firm as the same larger firm now audits close competitors once audited by separate firms. Prior theory also suggests that another group of potential clients should be attracted to the newly merged firm where the merger enhances or creates industry specializations. The expectation is that in both of these instances there will be increased switching activity associated with the newly merged audit firm. Contrary to expectations, a significantly lower level of switching behaviour was observed for the newly merged firm compared with that of the other Big 5 firms, suggesting that an advantage of enhanced specialization may not be the attraction of new clients but the retention of existing clients. When comparing the nature of the switches, some support was found for the view that the switches to the new firm were likely to be in enhanced areas of specialization, but no evidence was found to suggest that close competitors would switch away from this firm. The greater rate of retention of clients compared with other Big 5 firms was not associated with a more competitive audit pricing policy.

Concern has been raised over the impact of the PricewaterhouseCoopers merger on the competitiveness of the market for audit services. This paper aims to examine the market share and audit pricing of PricewaterhouseCoopers in the UK before and after its merger. It also seeks to examine the change in consultancy services income of PricewaterhouseCoopers since its merger.

Numerical data analysis is performed. In particular, concentration indices and audit fee model (OLS) are used.

The increase in audit services market concentration as a result of the merger has not led to an increase in audit prices. Although the merger has enabled PricewaterhouseCoopers to increase its market leadership in regions and in industrial sectors, neither industry leadership nor city leadership generated a premium in audit pricing. An analysis of non‐audit services fee income leads to the rejection of claims by critics that the main purpose of the merger is to enable PricewaterhouseCoopers to generate more non‐audit services income from their audit clients. Its non‐audit fee income has decreased since its merger.

Audit fee models used in the literature have not included the behavioural aspects of audit pricing, for example, client‐auditor relationship. In addition, due to data availability, consultancy fee income of PricewaterhouseCoopers before the merger cannot be analysed.

The research provides useful information for the accountancy profession and the regulators.

This study aims to examine an alternative use of accounting information and technology (forensic audit) for resolving conflicts between two government agents and consequently enhancing accountability in Nigeria.

The study adopts contextualised explanation of case study theorising. Data for the study were gathered from two primary documents: the forensic audit report of PricewaterhouseCoopers (PwC) and the report of the Senate Committee on Finance and Appropriation. The theory of mediation is used to illuminate the mediation process and its implication for accountability.

The study finds that the mediator (PwC) was able to resolve the dispute using different problem-solving techniques (data gathering and fact finding) of accounting and provide guidance on the necessary steps to be taken to enhance accountability. Whilst the disputants agreed to the audit firm’s findings, further actions to hold relevant parties accountable were not taken by the government. Accounting aids in realising accountability, but it is not the ultimate tool, as it operates within a host of other accountability infrastructures that subvert its impact.

This study uses a single case to understand the role of accounting in conflicts resolution. Therefore, as a general limitation of a case study design, we do not generalize beyond the case examined in this study.

The study has implications for accounting practice in developing countries. Firstly, the paper finds that accounting is held in high esteem as having the ability to unravel mysteries through its problem-solving techniques. Secondly, professional accounting firms need to maintain a high level of competence and integrity to sustain this position. Thirdly, accounting can help answer the question “Who should be held accountable?”

The study examines a novel case of how accounting is used in resolving conflicts in a rare setting and in ensuring accountability over public funds.

PwC is currently working with a broad cross‐section of employers in the UK to create a new Higher Apprenticeship for the professional services. The purpose of this paper is to explore the environment and drivers for the creation of the new Higher Apprenticeship framework, the work PwC is leading to develop it and the outlook for Higher Apprenticeships in the professions.

The information provided in this case study is drawn from the organisation's own work in creating a new Higher Apprenticeship Framework. It expands on research undertaken by PwC.

Creating a skilled workforce is consistently the number one priority for CEOs worldwide. Whilst graduate recruitment has been the long established route into professions such as accountancy, consulting and law, employers are looking to offer a wider range of different entry routes that enable them to attract and recruit from a broader, more diverse talent pool.

Employers are now playing a more active role in the design and delivery of programmes that will provide them with the pipeline of skilled people they need. The paper highlights how the higher apprenticeship currently in development will respond to these needs and how PwC propose to progress this further.

This paper seeks to investigate the effect of the PricewaterhouseCoopers (PwC) merger on the market for audit services in the UK. To this end a “what if” analysis is conducted comparing estimated outcomes prior to the merger with those expected under post‐merger conditions. Particular attention is given to the effect of the merger on the relative performance of the top tier and non‐top tier audit firms.

The paper employs a Markov chain model to estimate the long‐term market shares of audit firms' pre‐merger and post‐merger. Concurrently, an optimisation model is employed to generate parameters reflecting the relative attractiveness of audit firms and the probability that a client company continues with the current audit firm.

Prior to the PwC merger, this model would predict a large reduction in the share of the non‐Big Six from 17 per cent to a long run 7 per cent. However, the effect of the PwC merger appears to be that the position of the non‐Big Five has been improved and the model predicts a slight increase in long‐term market share to 18 per cent.

The Markov model employed makes a number of assumptions that may restrict the generality of the implications that can be drawn from the analysis.

The results show that, contrary to the worries of the competition authorities, the long‐term impact of the PwC merger, ceteris paribus, would be to improve the position of the non‐top tier of auditing firms.

Auditor concentrations studies have been mostly descriptive. This paper reports an analytical study of the potential effect of audit mergers on market concentration.

Auditing, accounting, finance, control.

Upper level undergraduate, MBA, MS accounting.

This case takes an internal approach by exploring how PricewaterhouseCoopers - Egypt develops and applies industry specialization in an emerging market such as Egypt. The case focuses on three aspects of specialization. First, the strategic drivers behind specialization. Second, the internal processes of building industry-specific knowledge. Finally, the costs and benefits of specialization.

Industry specialization is a strategy:

• Specialization is a strategy primarily used by Big 4 auditing firms, such as PwC-Egypt as a means of differentiating it self from the market.

Specialization is a strategy primarily used by Big 4 auditing firms, such as PwC-Egypt as a means of differentiating it self from the market.

Industry specialization is a culture:

• For specialization to be fully effective a learning culture should be in place in which firm personnel are committed to continually seek new in-depth knowledge about clients and their industries.

For specialization to be fully effective a learning culture should be in place in which firm personnel are committed to continually seek new in-depth knowledge about clients and their industries.

Human resources are the most valuable asset of auditing firms:

• Auditing is a service that involves extensive professional judgment. Thus, knowledge and expertise of its personnel is what differentiates one auditing firm's staff from another.

Auditing is a service that involves extensive professional judgment. Thus, knowledge and expertise of its personnel is what differentiates one auditing firm's staff from another.

Teaching notes.

This study aims to examine the resignations of Indian audit committee directors after a systemic shock (failure of Satyam Computer Services Ltd.).

The authors develop the research questions based on interviews with company directors and audit partners, in addition to economic theory. The authors then use archival data to test the research questions.

The authors find that social and peer pressure is a very important factor in explaining such departures and provides the basis for some counter-intuitive empirical results, for example, directors were less likely to resign from companies audited by Indian affiliates of PricewaterhouseCoopers even though Satyam was audited by one such auditor and ownership by founding families was not associated with director departures.

Going beyond economic theory and analyzes can be useful in examining issues related to corporate boards and audit committees.

Regulators should consider requiring disclosure about director attendance percentages, in addition to the number of meetings, at audit committee – and, perhaps, other board sub-committee – meetings.

Caution is warranted when using results from the USA and other Anglo-Saxon countries to address governance-related issues in India or other Asian countries.

A triangulation of economic theory and societal norms enables us to gain valuable insights about the resignations of audit committee directors in India.

In the highly competitive international consulting marketplace clients will always demand a world‐class service. A major challenge for PricewaterhouseCoopers is how to achieve the required level of international co‐ordination of the efforts of 160,000 people world‐wide without compromising responsiveness on a local scale in over 150 countries. Human resource management in general and management development in particular play an important role. A major investment is made in the development of the consultants, despite the acknowledged fact that most will leave the organization after only a few years. PwC uses a global framework of core competences as the key instrument in its development plan and every consultant is profiled according to it. Management development for partners has a more informal, self‐directed character. But the bottom line is still the optimization of international co‐ordination.

This paper aims to understand the interrelationships between the various factors that affect the use of course Web sites by university students in a developing country. The factors considered for the purpose of studying these interrelationships include perceived usefulness, perceived ease of use, perceived Web site credibility and Web site learning acceptance and satisfaction. Furthermore, a comparative study of the potential differences in perceptions between Indian and Omani students with respect to the aforementioned factors is also presented.

A survey instrument was used to collect data from students. Based on an extensive literature review, this paper uses empirical research to analyze student satisfaction in relation to learning through course Websites. Data were analyzed using factor analysis, structural equation modeling and a t-test.

Under the newly proposed construct, Web site credibility was found to be an important predictor of Web site learning acceptance and satisfaction, whereas perceived usefulness and perceived ease of use were mediating variables. In the extended study that compared the relative perceptions of Indian and Omani students, a statistically significant difference in Indian and Omani students was observed for Web site learning acceptance and satisfaction.

This study can provide valuable insights for decision-makers that will aid the development of more user-friendly course Web sites for higher education institutions and also promote higher levels of learning, satisfaction and greater course web site usage.

This study is probably the first attempt made to observe students’ perceptions of learning via course Web sites in Oman. Furthermore, the use of perceived Web site credibility as a factor in understanding perceptions regarding course Web site learning is a unique feature presented by this paper that is seldom seen in the existing research literature.

This study employs a sample survey to determine and analyse the corporate finance practices of South African listed companies in relation to cost of capital, capital structure and capital budgeting decisions.The results of the survey are mostly in line with financial theory and are generally consistent with a number of other studies. This study finds that companies always or almost always employ DCF methods such as NPV and IRR to evaluate projects. Companies almost always use CAPM to determine the cost of equity and most companies employ either a strict or flexible target debt‐equity ratio. Furthermore, most practices of the South African corporate sector are in line with practices employed by US companies. This reflects the relatively highly developed state of the South African economy which belies its status as an emerging market. However, the survey has also brought to the fore a number of puzzling results which may indicate some gaps in the application of finance theory. There is limited use of relatively new developments such as real options, APV, EVA and Monte Carlo simulation. Furthermore, the low target debt‐equity ratios reflected the exceptionally low use of debt by South African companies.