PwC fined £5 million for shoddy audits at 2 construction firms

The UK is bringing in sweeping audit reforms aimed at reining in the dominance of the largest accountancy firms and cleaning up the industry following a string of high-profile scandals.

PricewaterhouseCoopers was fined almost £5 million pounds ($6.22 million) for a series of poor audits of two UK  construction companies, as the regulator continued to crack down on audit failings by the Big Four.PwC will pay £3 million in relation to its audits of Galliford Try Plc, and £1.96 million over a review of Kier Group Plc, the Financial Reporting Council said Tuesday. It was also ordered to report on its most modern audits that considered long-term contracts, the FRC said.The UK is bringing in sweeping audit reforms aimed at reining in the dominance of the largest accountancy firms and cleaning up the industry following a string of high-profile scandals. The breaches “concern failures to properly audit revenue recognised under specific complex long-term contracts,” said Claudia Mortimore, the FRC’s deputy executive counsel.“We are sorry that aspects of our work were not of the required standard,” PwC said in a statement. The auditor said it’s “invested heavily” in a program to strengthen audit quality, including those on long term contracts and has “seen the positive impact of the actions we’ve taken.”  

Subscribe to our best newsletters

Subscribed to newsletter successfully

Thank you for subscribing to our Daily News Capsule newsletter.

Close Story