UK accounting watchdog fines PwC record 5 million pounds

[nitpicker]

http://uk.reuters.com/article/us-pwc-connaught-fine-idUKKBN18713Z

Thu May 11, 2017 | 10:41am BST

UK accounting watchdog fines PwC record 5 million pounds

By Huw Jones | LONDON

Britain's accounting watchdog has fined PwC a record five million pounds ($6.5 million) over the way it checked the books of collapsed social housing maintenance company Connaught. The Financial Reporting Council (FRC) also fined Stephen Harrison, a retired PwC audit partner, 150,000 pounds for misconduct in relation to the 2009 audit of listed Connaught, which went into administration in the following year. PwC, one of the world's top four accounting firms, and Harrison both received a severe reprimand.

The watchdog said in a statement that following an FRC investigation and a 12-day hearing, an independent tribunal found audit misconduct in relation to mobilization costs, long term contracts, and intangible assets. "PwC were also ordered to pay the (FRC) Executive Counsel's costs and to make an interim payment on account of 1.5 million pounds," the FRC said.

PwC said it was sorry that its work fell short of professional standards. "Since 2010 when the case began, we've worked hard to improve our procedures and processes. Audit quality is of paramount importance to PwC and the FRC's annual audit quality assessments have shown a trend of improvement in our work over several years," PwC said in a statement.
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