I would doubt that KJ would pit his internal legal team against the silks that PwC would engage. I would expect that PwC will be represented by nothing less than a King's Counsel and nobody would send their legal lambs to slaughter against such respected legal entities. It does seem that this advice was special accounting treatment advice received outside of the terms of just auditing the company's annual P&L report with the usual difficult to understand claims of what they have and have not examined in the process of signing off. It is no wonder KJ changed auditors during that breach of covenant fracas and there was I thinking shame on him for wanting a new auditor who would be less critical and damaging.
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