Although Pricewaterhouse Coopers will not serve as external auditor, the international accounting firm will still be assisting the Holy See through providing various consulting services as the Vatican works toward further transparency.
This was announced in a statement released by the Holy See Press Office, noting that the Holy See has entered into a new agreement with PwC, which is one of the ‘Big Four’ international accounting firms, along with Deloitte & Touche, KPMG, and Ernst & Young.
Fr. Lombardi presented the statement to journalists in the Holy See Press Office, and clarified that the Vatican’s audit will not be done externally, by Pricewaterhouse Coopers, but internally by the Audit General of the Vatican.
PwC had been appointed as the Vatican’s external auditor in December, but the Vatican suspended the audit.
This was announced in a statement released by the Holy See Press Office, noting that the Holy See has entered into a new agreement with PwC, which is one of the ‘Big Four’ international accounting firms, along with Deloitte & Touche, KPMG, and Ernst & Young.
Fr. Lombardi presented the statement to journalists in the Holy See Press Office, and clarified that the Vatican’s audit will not be done externally, by Pricewaterhouse Coopers, but internally by the Audit General of the Vatican.
PwC had been appointed as the Vatican’s external auditor in December, but the Vatican suspended the audit.
“As previously noted,” the statement began, “with respect to the relationship between the Holy See and PricewaterhouseCoopers (PwC) it was deemed useful to suspend auditing activity to examine the meaning and scope of certain contract clauses, as well as to examine the manner in which the contract was executed.”
“Together with PwC, those issues were duly examined in an atmosphere of serene collaboration, resolving the questions originally identified. In particular, it was recognized that, by law, the task of performing the financial statement audit is entrusted to the Office of the Auditor General (URG), as is normally the case for every sovereign state.”
“Given that, in conformity with the legal framework in force this institutional responsibility falls upon the URG, PwC will play an assisting role and will also be available to those dicasteries that wish to avail themselves of its support and consulting services.”
Necessary Clarification
“It is important to clarify that, contrary to what has been reported by some sources, the suspension was not due to considerations regarding the integrity or the quality of PwC’s work, nor is it attributable to the desire of one or more entities of the Holy See to hinder reforms.”
Fr. Lombardi reminded the press that working toward a correct and appropriate implementation of International Public Sector Accounting Standards (IPSAS) is normally complex and prolonged, since it requires a series of legislative choices as well as the adoption of administrative and accounting procedures, which are presently under development.
Broader Collaboration With Pwc
“Keeping in mind the valued activity already carried out by PwC, the Holy See announces that the parties, have entered into a new agreement which, in conformity with the institutional framework, provides for a broader collaboration with PwC that is adaptable to the Holy See’s needs.”
The statement concludes, noting “This agreement permits all of the entities of the Holy See to participate more actively in the reforms under way. With this initiative, the Holy See will promptly reassume its collaboration with PwC.
“The commitment to the economic-financial audit of the Holy See and of the State of Vatican City has been, and remains, a priority.”
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On the NET:
Website of Pricewaterhouse Coopers (PwC): http://www.pwc.com/
“Given that, in conformity with the legal framework in force this institutional responsibility falls upon the URG, PwC will play an assisting role and will also be available to those dicasteries that wish to avail themselves of its support and consulting services.”
Necessary Clarification
“It is important to clarify that, contrary to what has been reported by some sources, the suspension was not due to considerations regarding the integrity or the quality of PwC’s work, nor is it attributable to the desire of one or more entities of the Holy See to hinder reforms.”
Fr. Lombardi reminded the press that working toward a correct and appropriate implementation of International Public Sector Accounting Standards (IPSAS) is normally complex and prolonged, since it requires a series of legislative choices as well as the adoption of administrative and accounting procedures, which are presently under development.
Broader Collaboration With Pwc
“Keeping in mind the valued activity already carried out by PwC, the Holy See announces that the parties, have entered into a new agreement which, in conformity with the institutional framework, provides for a broader collaboration with PwC that is adaptable to the Holy See’s needs.”
The statement concludes, noting “This agreement permits all of the entities of the Holy See to participate more actively in the reforms under way. With this initiative, the Holy See will promptly reassume its collaboration with PwC.
“The commitment to the economic-financial audit of the Holy See and of the State of Vatican City has been, and remains, a priority.”
***
On the NET:
Website of Pricewaterhouse Coopers (PwC): http://www.pwc.com/
