PwC’s revenue in the U.S. was equal last year because audit firm spending by clients stopped when the epidemic began.
Consulting Group global sales rose 9.9 percent to 45 455.1 billion in the 12 months to June, with economies reopening in the last quarter due to increased corporate activity alone.
Global Chair Bob Moritz said PWC’s business in the U.S.’s largest region was particularly risky for reducing client costs because it relied too heavily on companies ’discretionary costs.
The results reflect PwC’s rival EY, which has reported slower growth than elsewhere in the United States. PwC’s sales in the region rose just 0.1 percent to .3 18.3 billion, a weaker performance than YY, which increased revenue there by 2.8 percent over the same period.
The weakness was partly explained by a one-third reduction in pass-through costs, such as business trips, which would typically be billed entirely by clients.
Moritz said the group would “look closely at the relationship between remote areas [working] And [audit] PwC follows the US decision to accept full-time remote work on a permanent basis.
PwC US, which failed to raise its revenue last year, announced last week that it would allow its 40,000 client-oriented staff to work permanently from anywhere in the country in an effort to improve staff recruitment and retention.
“We think the last 18 months have proven that it doesn’t degrade the quality of work, and so why remove it from the table?” Moritz said.
The U.S. decision is inconsistent with an earlier statement by PWC UK chairman Kevin Ellis, who said last year that “it is much harder to audit under the zoom lens”.
PWC has done well in Europe, the Middle East and Africa, where revenues rose 8 percent to about বিল 18 billion. In the Asia-Pacific region, where the group plans to double its business in five years, sales rose 9.4 percent to 9 8.9 billion.
However, regional growth figures were happy with the exchange rate fluctuations, with local currencies rising 2 per cent and 6.2 per cent, respectively. Global sales have increased by only 2 percent since the closure of foreign exchange.
The results follow a strategy and announced PwC’s announcement in June when it promised to increase its core account by 100,000 and invest 12 12 billion in its business over five years. The plan also included the creation of a “Trust Leadership Institute” to train clients on business ethics and environmental, social and governance issues.
Moritz said PwC was “evaluating” whether it would increase transparency in its own reporting and disclose its profits in the future. PWC and the other four major accountants – Deloitte, YY and KPMG – do not disclose global profit figures, making it difficult to evaluate their performance.
In the UK, where they are legally required to disclose their profits, PWC saw a 2 per cent increase in sales last year but pre-tax profits rose 25 per cent to about £ 1.2 billion.
Moritz said the recent widespread use of offshore tax havens with the help of wealthy individuals and political leaders in leaking financial information called “Pandora Papers” is a “concern” for the industry’s reputation.
Asked if any PwC advice was included in the leak, he said: “We don’t know anything at the moment, but. . . It was recent and so its review is ongoing. He added: “It’s up to each organization to make sure we’re morally responsible and legally responsible.”