On Thursday, Britain’s accounting watchdog penalized PwC 1.99 million pounds ($2.51 million) for “serious and pervasive” audit failures in Eddie Stobart Logistics’ year-to-November 2018 audit.
The FRC stated that remarkable cooperation and confessions reduced the penalties from 3.5 million pounds.
The agency claimed auditors admitted shortcomings in ESL property transactions, audit procedures, and property lease accruals.
The FRC penalized PwC audit partner Philip Storer 51,187 pounds. Cooperation and admissions saved him from a 90,000-pound penalty.
The FRC said that the logistics firm’s 2017 audit was conducted by KPMG, which quit in 2018 due to a breakdown in its relationship with ESL’s management and difficulties in getting sufficient audit evidence.
PwC audited 2018 afterward.
“There were numerous, serious and pervasive failings in this audit,” stated FRC deputy executive counsel Claudia Mortimore.
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