What Does an Accounting Firm Do for the Oscars?

Accountants don’t usually come to mind when we think about the Academy Awards. But a member of the Big Four has played a starring role in the world’s most prestigious film award ceremony since 1935. It’s been a long and briefly bumpy relationship since then.

Key Takeaways

• The Academy Awards has used an accounting firm to help it tabulate votes since 1935 when Bette Davis was passed over for a nomination.
• To counter claims of voting irregularities, PwC, then known as Price Waterhouse, was brought in to count the votes.
• In the years since, PwC has extended its relationship with the Academy, becoming the auditor of its financial statements and the preparer of its taxes.
• The 2017 ballot snafu that resulted in “La La Land” accidentally being declared Best Picture, instead of the actual winner, “Moonlight,” was a strain on PwC’s relationship with the Academy, but the two entities opted to continue their working relationship with new safeguards put in place.

History

Bette Davis is a key reason why accountants are part of the Academy Awards.

In 1935, Davis failed to receive a nomination for her role in “Of Human Bondage.” That caused a media uproar. Davis was eventually nominated after a write-in campaign, but she didn’t win.

“Syndicated columnists spread the word ‘foul’ and the public stood behind me like an army,” Davis wrote in her autobiography about the backlash against the Academy of Motion Picture Arts and Sciences.

That same year, the Academy also saw accusations of fraudulent tabulating, according to biographer A. Scott Berg. So it hired the accounting firm Price Waterhouse (now PwC) to count votes, ensure the secrecy of the results, and “stem the tide of unfavorable industry sentiment.”

Awards Night

On awards night, three PwC (PricewaterhouseCoopers) partners know which names will be called before anyone else in the world.

The votes are hand-counted and verified by the PwC Oscars team at a secret, secure location, a process which the company says takes approximately 1700 work-hours. Winner cards are designed and printed with every nominee’s name. Two complete sets of the famous envelopes are stuffed, sealed, and placed in locked briefcases once the tabulation process is complete. Three members of the PwC team, who rely on colleagues to help with counting but are the only ones with knowledge of the final tally, memorize the results as well. On the night of the awards, they walk the red carpet and take their respective positions backstage and in the control room with producers.

Secret Envelopes

This confidential envelope system was introduced in 1941 after The Los Angeles Times broke a news embargo in 1940 and published the results in the evening edition before the ceremony.

PwC and its system came under scrutiny in 2017 after “La La Land” was incorrectly announced as the winner of Best Picture at the 89th Academy Awards. PwC partner Brian Cullinan had given presenters Warren Beatty and Faye Dunaway the wrong envelope. The Academy rehired PwC, however, saying new protocols were established, including “a greater oversight role for PwC US Chair and Senior Partner.”

PwC Enjoys Oscars Clout

Besides doing the glamorous job of mingling with the stars and counting ballots, PwC prepares and audits the Academy’s financial statements and does its taxes. Variety reports that the firm also oversees the Academy’s elections.

Note

The firm charged the non-profit organization $224,455 for the fiscal year ending in June 2023, according to the Academy’s tax return.

So why does a global accounting giant that serves 86% of the Global Fortune 500 companies, and that has gross revenues exceeding $55 billion (for the fiscal year ending in June 2024) work for the Oscars?

While PwC was brought in all those years ago to help the Academy’s reputation, today it enjoys phenomenal exposure and publicity for being the trusted partner of a high-profile client like the Academy. Confidentiality, accuracy, and integrity, which the company says it employs in the balloting process, are also important to clients of accounting firms around the world.

What Is PwC?

PwC is an international accounting firm that provides assurance, tax and advisory services.

Where is PwC located?

PwC has offices in 149 countries.

How Many People Work for PwC?

More than 370,000 people work for the company.

The Bottom Line

After PwC handed the wrong envelope to Warren Beatty in 2017, analysts speculated about what this would mean for the company’s reputation. But after putting in place new rules, the company is still crunching numbers and filling envelopes for the Academy. At next year’s Oscars, PwC will likely have a bit of the spotlight.