PwC Australia releases latest review of Tax businesses’ governance and internal control framework

Thursday, 1 August 2024

PwC Australia releases latest review of Tax businesses’ governance and internal control framework

PwC Australia has released its latest Quigley Review, which examined the firm’s tax practice’s governance and internal control framework. The review was the second external review of the firm’s tax practice governance framework - the original Quigley report was published in 2021. The reviews aim to provide leadership with independent feedback, to ensure protocols and governance measures around tax advice are best practice and robust. 

The reviews were undertaken by Bruce Quigley. Mr Quigley is a retired ATO Second Commissioner and a Member of the Panel of Expert Advisors at the International Monetary Fund. After finalising his 2024 report, Mr Quigley presented his key findings to a number of senior leadership groups within the firm. 

The second Review found that the Tax business has the appropriate control framework to address the key elements of operational risk management and there is a robust quality management system in place. Further, PwC Australia has developed an effective control framework which is consistent with the principles and standards contained in the “Australian Tax advisory firm governance, Best practice principles” which were developed by the four largest tax advisory firms in conjunction with the ATO and published in 2022 (see here). 

The second Review made eight specific recommendations which PwC has accepted, and will continue to address.  

Tax & Legal Leader, Chris Morris, said the business has undergone a period of significant change and remains committed to building a leading culture that promotes ethical and governance excellence.  

“While there is room for improvement, we have made significant changes which have strengthened the quality of our governance frameworks and internal controls in recent years. As a leadership team, we are focussed on continuously looking for opportunities to improve these systems, while also building a leading culture, which meets the expectations of our people, clients and communities. 

“The Review makes a number of recommendations which we have accepted and have a plan in place to address,” he said. 

The actions being taken to enhance the Tax & Legal business following the Quigley Review are in addition to those the firm is taking as part of its Commitments to Change Action Plan, which aim to strengthen the firm’s governance and culture. 

The firm has also released a three-year strategy, which puts culture at its core. 

 Further information::

• You can read the 2021 and 2024 Quigley Review here. 
• You can read our Commitments to Change and the actions we have taken to date here. 
• You can read more about our strategy here.