​PwC fined $2.1M for audit failures regarding BT Group fraud disclosures

PwC sign

PwC will pay a reduced fine of 1.75 million pounds (U.S. $2.1 million) as part of sanctions against the Big Four firm for failures in its fiscal year 2017 audit at BT Group after the U.K. telecommunications company adjusted its financials to reflect a fraud scandal in Italy.

The Financial Reporting Council (FRC) announced the penalty Monday, in addition to a severe reprimand and requirement PwC declare its audit report did not meet relevant standards. The firm avoided a £2.5 million (U.S. $3 million) fine from the regulator for early admissions.

Also disciplined was Richard Hughes, who served as engagement partner and senior statutory auditor for PwC on the BT audit. Hughes received a reduced fine of £42,000 (U.S. $51,000), a reprimand, and must similarly declare not meeting relevant standards.

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