PwC slapped with £7.5m fine over Babcock audits

PwC has been hit with a £7.5m fine by the UK’s accounting regulator for "serious breaches" on audits of engineer Babcock.

The Financial Reporting Council (FRC) on Wednesday found failings on Babcock audits up to the end of March 2017 and 2018, as well as a subsidiary. PwC had repeatedly failed to challenge management and obtain sufficient appropriate evidence, it added.

However, the fine was discounted by 25% to £5.6m due to early resolution.

Two PwC partners - Nicholas Campbell Lambert and Heather Ancient - were also fined £200,000 and £65,000, but also received discounts to £150,000 and £48,750.

An FRC investigation into PwC audits of the Babcock for 2019 and 2020 is ongoing.

Reporting by Frank Prenesti for Sharecast.com