New regulatory requirements, particularly in the U.S. and Europe, have led to clear improvements in financial reporting and will help prevent a recurrence of the recent spate of corporate scandals, says the global CEO of PricewaterhouseCoopers.

In its 2005 annual review released today, the giant accounting firm tackles key issues facing the accounting profession, such as regulation, audit quality, and the industry’s long-term future.

In the review, PwC global CEO, Samuel DiPiazza Jr. offers his perspectives on the future priorities and direction of his firm on the pressing issues facing the profession. He says that although the new regulatory environment is helping to restore public trust in the capital markets, the bar for audit quality must be set higher to create sustainable value for stakeholders.

DiPiazza said he expects that the market for assurance, tax and advisory services will remain highly competitive. The sustainability of the profession, he added, will depend on delivering value that is recognized by clients and others. Providing advisory services will remain a critical ingredient in attracting and retaining talented people and in maintaining a dynamic and sustainable profession.

“Good progress has been made in enhancing the quality and the oversight of the auditing function and in driving wider improvements in transparency and corporate governance, all of which should help to increase public trust and value creation. However, we still have much to do to ensure that the profession remains sustainable,” he says.

The review also reports that gross aggregate revenues for PricewaterhouseCoopers firms in fiscal 2005 were US$20.3 billion, an increase of nearly 17% as expressed in U.S. dollars and more than 12% in local currencies. Excluding expenses reimbursed by clients, net aggregate revenues were US$19 billion.

Demand for advisory services, which encompass crisis management, transactions and performance improvement, has grown rapidly, with revenues from advisory work reaching more than US$3.5 billion in fiscal 2005, up 37% from fiscal 2003. Tax and human resource services, which comprises tax compliance, tax structuring and M&A support, and human resource services, rebounded in fiscal 2005, following two years of declining or flat revenues, to grow by 5.5%. Revenue from assurance services increased 14.6%.

“Fiscal 2005 was a year of vibrant growth and real achievement,” said DiPiazza. “PricewaterhouseCoopers’ aggregate revenue increase was driven by increased demand for our services, by new regulatory requirements in a number of major capital markets and by a favourable global economic climate. The continuing expansion of emerging economies in Asia and South America also fueled overall growth.”