Future Of British Business
PwC Fined £5.6 Million for Babcock Audit Work by UK Watchdog
- FRC said PWC’s audits fell short of the standard expected
- Two ex-partners were also fined for their audit work
Photographer: Leon Neal/Getty Images
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PricewaterhouseCoopers LLP was hit with a £5.6 million ($6.6 million) fine by the UK’s audit watchdog over serious failures for its work on Babcock International Group Plc’s books in 2017 and 2018.
“The quality of these audits fell far short of the standards expected of statutory auditors. Of particular concern is the lack of skepticism applied and the failures to follow some basic audit requirements,” Claudia Mortimore, the Financial Reporting Council’s deputy executive counsel, said. The fine was discounted by 25%.