Price Waterhouse Coopers were ditched as Tosh’s auditors after they refused to sign off last quarter’s accounts.
So Toshiba published the accounts unaudited and sacked PwC.
It’s rather refreshing to hear of an auditor prepared to stand up for righteousness and truth – the old joke about an accountant’s reply to being asked what 2 + 2 equals was: ‘Whatever my client says it is.’
Maybe today’s accountants are more principled.
PwC’s predecessors as accountants to Tosh, Ernst & Young, also came to a sticky end with regulators slamming them for apparently failing to notice that Tosh had overstated its profit by $1.3 billion over 7 years.
Tosh are now looking for a new auditor.
It will be interesting to see who applies for the job – applications might be seen as an admission of prospective auditorial flexibility.