PwC fined £5m for shoddy audits at two construction firms

PwC will pay £3m in relation to its audits of Galliford Try Plc, and £1.96m over a review of Kier Group Plc.
Image: Krisztian Bocsi/Bloomberg

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.”

© 2022 Bloomberg

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