PwC fined £5m for misconduct in company’s audit
PwC LLP and Stephen Harrison fined for Misconduct in relation to Connaught plc
PwC and Stephen Harrison, a retired PwC audit partner, have been severely reprimanded and fined £5m and £150,000 respectively for Misconduct in relation to the 2009 audit of Connaught plc, a FTSE 250 company which went into administration in 2010. Following a Financial Reporting Council (FRC) investigation and a 12 day hearing, the independent Tribunal, chaired by the Rt Hon Sir Stanley Burnton, made findings of Misconduct in relation to three areas of audit: mobilisation costs, long term contracts and intangible assets.
PwC were also ordered to pay the Executive Counsel’s costs and to make an interim payment on account of £1.5 million.