PwC sets second record in three months for a fine by the UK’s audit watchdog
The latest fine comes hot on the heels of — and surpasses — the recent £5m fine, and would have been even bigger were it not for a discount
London — PricewaterhouseCoopers was fined £5.1m for misconduct over its audit of RSM Tenon Group in the largest-ever sanction issued by the UK accounting regulator. The Financial Reporting Council announced the fine Wednesday, along with penalties against Nicholas Boden, a senior PwC audit partner. The misconduct related to an audit of RSM’s accounts for the year ended June 2011. RSM is a professional services firm offering advice on taxes and risk. The record penalty comes only three months after PwC incurred another record fine for misconduct over its audit of Connaught, a FTSE 250 company that went into administration in 2010. The FRC issued a £5m sanction against the auditor over the Connaught work in May, which was then the largest penalty the regulator had issued. "We are sorry that aspects of the audit carried out in 2011 fell short of professional standards," a PwC spokesman said in an e-mailed statement. "We continually review and update our audit processes in response to b...
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