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PwC hit with fine over audit

PricewaterhouseCoopers (PwC) has been fined by the Financial Reporting Council (FRC) to the tune of £5.1m, due to mismanagement in its RSM Tenon 2010-11 audit.

ICAEW member, audit engagement partner and senior statutory auditor Nicholas Boden, has further received a fine for £114,750, as well as a severe dressing down.

Both Boden and PwC confessed to failing when it came to meeting required standards, and did not comply with the ICAEW’s Fundamental Principle of Professional Competence and Due Care. Mismanagement included failing to exert adequate professional scepticism and acquire necessary audit evidence.

PwC said in its statement:

“We cooperated fully with the FRC during its lengthy investigation and accept its findings.

“We continually review and update our audit processes in response to both internal reviews and external inspection findings. Audit quality is of paramount importance and our annual audit quality reviews show year-on-year improvements.”

The FRC said that investigations into RSM Tenon Group’s ex finance director, Russell McBurnie, are still in progress.

RSM Tenon had an RSM International membership until 2013, when the firm’s shares were suspended and it went into administration.

Tech company Toshiba had escaped the fate of RSM Tenon, as PwC approved its accounts after a lengthy delay.

Any kind of mismanagement in accounting can prove serious for a company, making it an area that needs to be given sufficient respect by businesses of all sizes. An accountant in the Wirral can ensure that any company’s accounts are in more than capable hands.

Posted by Mark
September 5, 2017

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