PricewaterhouseCoopers Reports Fiscal 2002 Global Revenues of $13.8 Billion

First Global Annual Review Discloses Organisation's Quality Control Processes

And Risk Management Practices

Nov 14, 2002, 00:00 ET from PricewaterhouseCoopers

    NEW YORK, Nov. 14 /PRNewswire/ -- PricewaterhouseCoopers today announced
 combined global net revenues of $13.8 billion for the fiscal year-ended
 June 30, 2002, a 1 percent increase over the previous year's net revenues of
 $13.6 billion, as expressed in underlying local currencies.  The revenue
 figures are included in the organisation's first "Global Annual Review," a
 report on PricewaterhouseCoopers' global quality, risk management and
 independence programmes that can be found in electronic version at
     The flat revenue growth against prior-year revenues is attributed to
 economic conditions in certain key geographic markets, specifically North
 America and South and Central America.  These revenues exclude PwC Consulting
 and discontinued operations' revenues of $5.1 billion in FY02 and $6.1 billion
 in FY01. Net revenues exclude all subcontractor and other pass-through
     The 2002 Global Annual Review is the first of its kind for a professional
 services organisation and fulfils a commitment made by PricewaterhouseCoopers
 Global CEO Samuel A. DiPiazza, Jr. earlier this year to open the
 privately-held network to greater outside scrutiny by discussing performance
 information, internal quality programmes, and risk management processes and
     "The events which have rocked global markets and the accounting profession
 in the past year require thoughtful debate and exchange.  To that end with
 this first Global Annual Review, I hope we can open a conversation with our
 stakeholders -- internal and external -- to provide a snapshot of our
 organisation and to showcase the quality and integrity of our people," said
 Samuel DiPiazza, Global CEO of PricewaterhouseCoopers.
     Global Revenues
     Assurance and Business Advisory Services (ABAS) generated global revenues
 of $7.99 billion, an increase of 1 percent in underlying local currencies.
 Tax and Legal Services generated global revenues of $4.18 billion, an increase
 of 2 percent over last year.  Revenue in Corporate Finance and Recovery (CFR)
 services was $1.2 billion, representing a 2 percent gain over the previous
     On a geographic basis, revenue growth was down 4 percent in North America
 to $5.17 billion, most pronounced in the U.S. due to economic conditions and
 the sustained effects of the events of September 11. Revenues were also down
 2 percent in South America to $608 million due in large part to currency
 devaluation and economic conditions.  In Asia-Pacific, revenues were up
 5 percent to $ 1.74 billion, with particularly dynamic growth in China; and
 revenues in Europe/Middle East/Africa were up 6 percent to $6.25 billion.
     Spirit of Accountability: Commitment to Quality Performance
     In the first such report in the profession, Global CEO DiPiazza writes,
 "Our responsibility to the public interest and to providing the most valued
 work can be fulfiled only if our people stand for quality and integrity.  For
 these reasons, I thought it would be useful to focus our first Global Annual
 Review on demonstrating how and why PwC is the leader in terms of revenue as
 well as a commitment to continually improve our profession."
     The Global Annual Review highlights some of the quality control processes
 in place at PricewaterhouseCoopers, designed to meet the stated standard of
 "zero defects" in every client engagement.
     Global Performance Standards for employees - To achieve consistent high
 quality performance globally, PricewaterhouseCoopers has global performance
 standards supported by common policies and methodologies that all member firms
 are expected to meet.  Quality Review programmes measure the adherence to
 these quality performance standards annually.  More than 50,000 partner and
 manager hours are invested in Quality Reviews, representing a time and expense
 investment of nearly $20 million.  During the past three years, the work of
 every audit partner in the network has been reviewed under the Quality Review
     Global Quality Standards for Clients - follows a rigorous screening
 process when deciding to take on a new client or to continue providing service
 to an existing one.  This process is supported by proprietary decision
 software called FRISK. PricewaterhouseCoopers was the first global accountancy
 organisation to develop and implement such software.
     Independence - Auditor independence from the companies audited is crucial
 to maintaining the highest quality performance.  Over the past few years,
 PricewaterhouseCoopers has established a formal global network of independence
 professionals and policies and processes to manage cross-border auditor
 independence issues.  These measures include:
      * An independence partner in every member firm;
      * A network of partners and professionals in every line of service who
        are responsible for compliance with auditor independence policies in
        the delivery of non-audit services;
      * Common independence policies and processes supported by training and
        continually updated to reflect changes in regulatory and professional
     Across the network of firms, PricewaterhouseCoopers has recently taken
 additional steps, including:
      * Completion of the global sale of PwC Consulting, including Business
        Process Outsourcing, to IBM;
      * Divestiture or disposal of other businesses and services in the US,
        including Corporate Value Consulting and Business Recovery Services, as
        well as Unifi, the Human Resource outsourcing business, and
      * Enhancing global and national internal programmes regarding the quality
        of our services.
     People of Integrity
     Even after the divestiture of number of businesses over the past 18 months
 PricewaterhouseCoopers firms employ approximately 125,000 people working in
 142 countries.
     People by PricewaterhouseCoopers Theatre
     Asia-Pacific (including Australia)            20,910
     Europe, Middle East and Africa                63,905
     North America                                 32,411
     South and Central America                     7,337
     Total                                         124,563
     Global Ethics and Business Conduct Programme - The PricewaterhouseCoopers
 Code of Conduct was launched in September 2002.  This written code provides
 guidance about standards of integrity and business conduct.
     Partner and Staff Turnover - PricewaterhouseCoopers aims for a turnover
 rate that remains stable over time while taking into account that turnover
 rates differ from country to country, owing to social, cultural, legal and
 economic factors.  The annual turnover rate among client service staff is in
 the range of 20-25 percent. That figure represents both voluntary and
 involuntary turnover, including redundancy programmes in some markets due to
 economic conditions.  Our turnover is partly attributable to a commitment to
 selectivity and promotion of the highest performers.  The turnover rate for
 partners is in the range of 5-7 percent.
     Training - PricewaterhouseCoopers' client service staff received in excess
 of 3 million hours of training in 2002.  In addition to traditional classroom
 training, employees receive other types of learning, including
 self-instruction, on-the-job training, e-learning and personally tailored
 development plans.  In particular, PricewaterhouseCoopers works toward
 building competency on a global basis through:
      * Technical training in accounting, auditing, taxation, corporate finance
        and human resource services.  New hires and people eligible for
        promotion also are required to take risk management training;
      * Training in and use of common methodologies;
      * Industry knowledge and knowledge sharing;
      * Providing tools and techniques for creating client teams that cross
        over, as required, both geographic borders and internal organisational
        borders, including language training when necessary.
     People Survey - Areas for Improvement - Key results of an independent
 survey of PricewaterhouseCoopers people by International Survey Research are
 published in the 2002 Global Annual Review.  Though the organisation
 consistently outperforms the averages posted among professional services firms
 with high scores for ethics, integrity and pride in name and reputation, the
 survey uncovered areas for improvement, including:
      * Credibility of the commitment to become the best place to work;
      * Commitment to coaching, development and overall learning;
      * Work/life balance;
      * Levels of compensation and recognition for good work.
     "The best standards in the world and impeccable regulatory institutions
 will not bring about good accounting or auditing unless the people actually
 doing the work are of the highest caliber.  As the debate on regulating our
 profession progresses, we feel strongly that nothing must be done that will
 reduce the attractiveness of the profession to quality entrants," said
 DiPiazza.  "We operate in a world of difficult professional judgments.  Our
 focus on development, inclusiveness, and recognition of our people enables us
 to respond to this challenge by nurturing people of integrity, motivated to
 deliver excellence in everything they do."
     The 2002 Global Annual Review is distributed to PricewaterhouseCoopers
 clients and staff around the globe.  It is also available at .
     Note to Journalists:  The growth rates reflect the impact of currency
 fluctuations.  For purposes of comparison, fiscal 2001 revenues are expressed
 in U.S. dollars at 2002 exchange rates.
     PricewaterhouseCoopers ( is the world's largest
 professional services organisation.  Drawing on the knowledge and skills of
 more than 125,000 people in 142 countries, we build relationships by providing
 services based on quality and integrity.
     ("PricewaterhouseCoopers" refers to the network of member firms of
 PricewaterhouseCoopers International Limited, each of which is a separate and
 independent legal entity.)
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