The logo of accounting firm PricewaterhouseCoopers (PwC) is seen on a board at the St. Petersburg International Economic Forum 2017 (SPIEF 2017) in St. Petersburg, Russia, June 1, 2017.
LONDON 16 August 2017: Britain's accounting watchdog has fined audit firm PricewaterhouseCoopers LLP 5.1 million pounds and given it a severe reprimand after it admitted misconduct over its audit of collapsed accounting firm RSM Tenon.
The Financial Reporting Council (FRC) said PWC and one of its audit partners, Nicholas Boden, had admitted a series of failures when they signed off on RSM Tenon's accounts for the financial year ended June 2011.
"The admitted acts of misconduct include failures to obtain sufficient appropriate audit evidence and failures to exercise sufficient professional scepticism," the FRC said in a statement.
RSM Tenon, which had been listed on the London stock market, collapsed into administration in 2013 and its assets were taken over by rival Baker Tilly.
The FRC said PWC had to pay a fine of 6 million pounds, reduced to 5.1 million after a settlement discount as well as a contribution to the watchdog's costs of 500,000 pounds.
Boden, who was PWC's senior audit partner for RSM Tenon, was fined 114,750 pounds and given a severe reprimand.
The FRC said proceedings against Russell McBurnie, RSM Tenon Group plc’s former Finance Director, are still ongoing.
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