PwC fined £10m over audit failures
The Financial Reporting Council (FRC), the UK’s accounting industry regulator, has issued an announcement to inform that has sanctioned PriceWaterhouseCoopers (PwC) and audit partner Steve Denison.
In accordance the announcement, the Financial Reporting Council has sanctioned PriceWaterhouseCoopers (PwC) and audit partner Steve Denison in relation to the 2014 audits of BHS and the Taveta Group (Taveta) following an investigation under the Accountancy Scheme opened in June 2016.
PwC and Steve Denison have admitted Misconduct and accepted substantial fines and non-financial sanctions.
PwC:
- A fine of £10 million;
- A Severe Reprimand;
- A Condition that PwC monitor and support its Leeds Audit Practice and provide detailed annual reports about that practice to the FRC for the next three years;
- An undertaking by PwC to review and amend its policies and procedures to ensure that audits of all non-listed high risk or high-profile companies (including private companies which employ at least 10,000 individuals in the UK) are subject to an engagement quality control review.
Mr Denison:
- A fine of £500,000;
- A Severe Reprimand;
- A Condition not to perform any audit work for a period of 15 years;
- An undertaking by Mr Denison to remove his name from the register of statutory auditors and not to apply to have his name re-entered on the register for a period of 15 years.
The fines will be reduced by 35% to £6.5 million and £325,000 respectively for early settlement. The settlement agreement has been approved by The Right Honourable Sir Stanley Burnton, independent Tribunal member.
Source: FRC – Sanctions against PwC and former audit partner in relation to BHS
