Auditors to Help with Bailout? PwC and E&Y

The Treasury Department chose PricewaterhouseCoopers LLP and Ernst & Young to help implement its $700 billion bailout plan.

The government agency said the firms will provide Treasury with the accounting and internal controls services needed to administer the complex portfolio of troubled assets that the department will purchase. Those include whole loans and mortgage backed securities, under the Troubled Asset Relief Program (TARP).

For its part, PwC will help Treasury "establish a sound internal control posture," the department said. Ernst & Young will provide "general accounting support and expert accounting advice."

The initial orders are worth $191,469.27 and $492,006.95, respectively.

Treasury did not provide further details on why it selected the two accounting firms. Their agreements last until Sept. 30, 2011.

Treasury explained that on Oct. 8 it had issued two requests for quotes from 12 firms on the General Services Administration's Federal Supply Schedules. The department received six responses for each request, after which the PwC and E&Y contracts were awarded.