The penalty was reduced from £6.5m after the company admitted its wrongdoing ahead of a final decision by the Financial Reporting Council. Two PwC partners, Jaskamal Sarai and Arif Ahmad, were each fined a reduced £140000 after admitting breaches in the standards of their work, and were also given a “severe reprimand.”
The breaches were “numerous and in certain cases were of a basic and/or fundamental nature, evidencing a serious lack of competence in conducting the statutory audit work,” according to an FRC statement yesterday.
This latest transgression adds to the scrutiny of PwC, Deloitte, EY and KPMG, which together control more than 90percent of UK audits for large companies.
The Competition and Markets Authority has urged a split of their operations amid allegations of conflicts of interest and a failure to spot a series of high-profile corporate failures, including the wake of building contractor Carillion.