Basic Search  |  Summaries  |  Advanced SearchPenalty: £3,050,000
Year: 2016
Date: 31 August, 2016
Offence Group: financial offences
Offence Type: accounting fraud or deficiencies
Violation Description: The Financial Reporting Council announced the outcome of the disciplinary case relating to PricewaterhouseCoopers LLP (PwC) and its audits of the financial statements of Cattles plc and Welcome Financial Services Limited for the year ended 31 December 2007. PwC admitted that its conduct fell significantly short of the standards reasonably to be expected of a Member Firm in issuing unqualified audit opinions in respect of the 2007 Cattles and Welcome financial statements in circumstances where PwC (i) had insufficient audit evidence as to the adequacy of the loan loss provision and (ii) had failed to identify the fact that the impairment policy was not adequately disclosed and that the disclosures in those financial statements were not in compliance with IFRS 7. PwC agreed to receive a Severe Reprimand and pay a Fine of £3,500,000 (reduced to £2,300,000 after mitigation and a settlement discount) as well as £750,000 as a contribution to the Executive Counsel's costs.
Action Type: agency action
Agency: Financial Reporting Council
HQ Country of Parent: United Kingdom
Ownership Structure of Parent: privately held
Major Industry of Parent: business services
Specific Industry of Parent: accounting services
Source of Data: (click here)