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.
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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