ChuoAoyama PricewaterhouseCoopers said Monday all 11 of its board members except the chairman have stepped down to take responsibility for the arrest and indictment of its auditors charged with helping Kanebo Ltd.'s massive window-dressing.
Chairman Akio Okuyama, who assumed the top position at the major auditing firm in May, told a news conference he will stay and carry out his responsibility by overhauling the firm's corporate governance. He will take a 50 percent salary cut for six months.
The firm said the four arrested accountants had tendered their resignations.
Okuyama said the resignations of the three who were indicted can effectively be taken as punitive discharges.
He explained the firm had to dismiss them in this way because firing partners would require a time-consuming court process during which their status as partners would remain intact.
The firm said it will introduce steps to beef up internal surveillance to prevent wrongdoing by its auditors, including setting up a special investigation team that will respond to tips.