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

The UK is bringing in sweeping audit reforms aimed at reining within the dominance of the biggest accountancy firms and cleansing up the trade following a string of high-profile scandals.

PricewaterhouseCoopers was fined nearly £5 million kilos ($6.22 million) for a collection of poor audits of two UK  construction corporations, because the regulator continued to crack down on audit failings by the Big Four.

PwC pays £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 mentioned Tuesday. It was additionally ordered to report on its most fashionable audits that thought of long-term contracts, the FRC mentioned.

The UK is bringing in sweeping audit reforms aimed at reining within the dominance of the biggest accountancy firms and cleansing up the trade following a string of high-profile scandals. 

The breaches “concern failures to properly audit revenue recognised under specific complex long-term contracts,” mentioned Claudia Mortimore, the FRC’s deputy govt counsel.

(*2*) PwC mentioned in an announcement. The auditor mentioned it’s “invested heavily” in a program to strengthen audit high quality, together with these on long run contracts and has “seen the positive impact of the actions we’ve taken.” 

 


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