Role of Accounting Firms in the Oscars
One might wonder how Academy Awards, or Oscars are related to Accountancy and Accounting Firms. But the tedious process of counting votes electronically is undertaken by the London-based accounting firm Price Waterhouse ( now PwC ).
When contemplating the Academy Awards, the involvement of accountants may not immediately spring to mind.
Tabulation of Votes by Accounting Firms
While originally left from the list of Best Actress nominees, Davis’ performance was so highly regarded that the Academy allowed, in one of only a few years, for a write-in vote to recognize her performance. The absence of Bette Davis’s nomination for her role in “Of Human Bondage” in 1935 triggered a media uproar, leading to accusations of fraudulent tabulating within the Academy.
To counteract voting irregularities and restore industry confidence, the Academy enlisted the services of the London-based accounting firm Price Waterhouse ( now PwC ) to count votes and ensure the confidentiality of results. This marked the inception of a lengthy and occasionally bumpy relationship, with PwC evolving into the auditor of the Academy’s financial statements and the preparer of its taxes.
On the night of the awards, three PwC partners, privy to the results before anyone else worldwide, meticulously hand-count and verify the votes. This process, conducted at a secure location, consumes approximately 1700 work-hours. The infamous winner cards, featuring every nominee’s name, are printed, sealed, and securely stored in locked briefcases after the tabulation is complete.
The Ballot Mishap at 2017 Oscars
Despite the 2017 mishap declaring the wrong Best Picture winner, PwC and the Academy chose to continue their collaboration, implementing new safeguards. The introduction of the confidential envelope system in 1941 aimed to prevent premature result leaks, addressing an issue that arose in 1940 when The Los Angeles Times published results before the ceremony.
Confidentiality, Accuracy and Integrity
In addition to its role in the balloting process, PwC undertakes the responsibility of preparing and auditing the Academy’s financial statements, handling its taxes, and overseeing elections.
Despite the modest fee of $222,051 charged to the non-profit organization in 2016, PwC, a global accounting giant with a vast clientele, benefits from unparalleled exposure and publicity as the trusted partner of the prestigious Academy Awards.
Conclusion
While questions were raised about PwC’s reputation after the 2017 envelope mix-up, the company, having implemented new protocols, continues its crucial role in the Oscars. The enduring partnership underscores the importance of confidentiality, accuracy, and integrity, traits that resonate with clients of accounting firms worldwide. PwC’s enduring commitment to the Oscars ensures that, even after serious controversies, it maintains a prominent role in the spotlight at Hollywood’s most illustrious event.
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