Taylor Bean And Whitaker Mortgage Corp.: Case Study

884 Words 4 Pages
PwC has a history in client services in the nineteenth century. In 1998 from a merger between Price Waterhouse and Coopers & Lybrand. Today, PwC serves 26 industries. They industry focused on services in the fields of assurance, tax, human resources, transactions, performance improvement and crisis management that had helped resolve complex client and stakeholder issues worldwide. They also apply their expertise and talents to help educational institutions, the federal government, non-profits and international ease agencies address their unique business issues. The purpose to produce financial statements is to provide information about their financial position and performance. This information is used by a wide range of stakeholders for making economic decisions. The owners of these …show more content…
This case was against PWC by the Taylor Bean and Whitaker Mortgage Corp., of a bankruptcy trustee for 5.5 billion dollars. The case is unusual because the plaintiff is the trustee of the individual that committed the fraud and is suing not its own audit firm but the audit firm of the institution it defrauded. The trial has the possible to influence public perception of auditors, as well as strategies to use the plaintiff lawyers that they are against within this cases. The bankruptcy trustee for Taylor Bean & Whitaker Mortgage Corp., is the 12th largest U.S. mortgage lender, which sued PwC for $5.5 billion in damages in 2012 after the bank went bankrupt in August 2009. The Federal regulators Deloitte uncovered a $3 billion fraud involving fake mortgage assets. The bankruptcy trustee for Taylor claim that PwC was negligent in not pointing out the fraud from its place as auditor of Colonial Bank, which bought the apparently fake mortgages that Taylor Bean had originated and that made Taylor Bean’s losses worse. The lead attorney for PWC from the firm King and Spalding issued a statement “PricewaterhouseCoopers said they did not audit or engaged in any other services

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