Morgan Stanley will run the sale for PwC, according to reports from Reuters.
Potential buyers of the unit, which is expected to earn more than $60m next year, include private equity firms Veritas and Madison Dearborn Partners.
The practice provides business process services to various agencies including the Department of Defense and the US Agency for International Development.
The appearance of a conflict of interest – there are restrictions on consulting services audit companies can offer government customers – means that PwC is currently limited in the government agency audits it can undertake.
On Wednesday, the US Department of Defense (DoD) announced that it will conduct its first ever agency wide audit of its financial history.
The audit will require picking through the statements of the $2.4trn in DoD assets.
The DoD said it had hired independent auditors to conducts audits across the individual components of the department.
“Beginning in 2018, our audits will occur annually, with reports issued Nov 15,” said David L Norquist, DoD comptroller.
PwC will be providing “audit readiness services” to the DoD according to Reuters.