{"id":1896,"date":"2022-01-17T11:35:55","date_gmt":"2022-01-17T16:35:55","guid":{"rendered":"https:\/\/compliancechief360.com\/?p=1896"},"modified":"2022-05-19T13:03:28","modified_gmt":"2022-05-19T17:03:28","slug":"u-k-audit-watchdog-expands-investigation-into-pwc-over-babcock-audits","status":"publish","type":"post","link":"https:\/\/compliancechief360.com\/u-k-audit-watchdog-expands-investigation-into-pwc-over-babcock-audits\/","title":{"rendered":"U.K. Audit Watchdog Expands Investigation into PwC over Babcock Audits"},"content":{"rendered":"<span class=\"wpsdc-drop-cap\">T<\/span>he United Kingdom\u2019s Financial Reporting Council has expanded its investigation into audits conducted by Big Four firm PricewaterhouseCoopers of Babcock International Group to include the fiscal years 2019 and 2020. The FRC was already investigating the accounting firm\u2019s audits of the U.K. defense contractor in 2018 and 2017, after spot checks found the quality of some audits was poor.<\/p>\n<p>The investigation will be conducted by the FRC\u2019s Enforcement Division under the Audit Enforcement Procedure.\u00a0The decision was made at a meeting of the FRC\u2019s Conduct Committee in December, following public announcements regarding the outcome of the Contract Profitability and Balance Sheet review (CPBS) commissioned by Babcock. Babcock took a writedown of $2.7 billion last year after an internal review of contract profitability. Babcock also suffered a $2.2 billion loss as a result and saw its shares drop sharply.<\/p>\n<p><span style=\"color: #015249;\"><strong>PwC Cooperating<\/strong><\/span><br \/>\n\u201cWe will co-operate fully with the FRC in its enquiries,\u201d said a PwC spokesperson. \u201cAudit quality is of paramount importance and we remain committed to our ongoing program to enhance audit quality and to the delivery of consistently high-quality audits.<\/p>\n<p>\u201cThe FRC\u2019s annual reviews of our audit work, policies, and procedures show a continued trend of improvement in our work and we use their insights, together with our own reviews, to continuously improve how we deliver high quality audits.\u201d<\/p>\n<p>Last year, Babcock removed PwC as its auditor after almost two decades and named Deloitte as its replacement. The extended FRC investigation comes on top of ongoing probes into PwC\u2019s work on Wyelands Bank, BT, and collapsed minibond company London Capital &amp; Finance.\u00a0 <img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1477\" src=\"https:\/\/compliancechief360.com\/wp-content\/uploads\/2021\/06\/CC360-end-slug.png\" alt=\"end slug\" width=\"20\" height=\"20\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The United Kingdom\u2019s Financial Reporting Council has expanded its investigation into audits conducted by Big Four firm PricewaterhouseCoopers of Babcock International Group to include the fiscal years 2019 and 2020. The FRC was already investigating the accounting firm\u2019s audits of the U.K. defense contractor in 2018 and 2017, after spot checks found the quality of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1906,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1,26],"tags":[58],"class_list":["post-1896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-featured-news","tag-enforcement-actions"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>U.K. Audit Watchdog Expands Investigation into PwC over Babcock Audits - Compliance Chief 360<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/compliancechief360.com\/u-k-audit-watchdog-expands-investigation-into-pwc-over-babcock-audits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"U.K. Audit Watchdog Expands Investigation into PwC over Babcock Audits - Compliance Chief 360\" \/>\n<meta property=\"og:description\" content=\"The United Kingdom\u2019s Financial Reporting Council has expanded its investigation into audits conducted by Big Four firm PricewaterhouseCoopers of Babcock International Group to include the fiscal years 2019 and 2020. The FRC was already investigating the accounting firm\u2019s audits of the U.K. defense contractor in 2018 and 2017, after spot checks found the quality of [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/compliancechief360.com\/u-k-audit-watchdog-expands-investigation-into-pwc-over-babcock-audits\/\" \/>\n<meta property=\"og:site_name\" content=\"Compliance Chief 360\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/InternalAudit360com-546428422399536\/\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-17T16:35:55+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-19T17:03:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/compliancechief360.com\/wp-content\/uploads\/2022\/01\/pwc-logo-image.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1083\" \/>\n\t<meta property=\"og:image:height\" content=\"722\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Joseph McCafferty\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@McCafOnAudit\" \/>\n<meta name=\"twitter:site\" content=\"@CC360Com\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"CC360 Staff\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/compliancechief360.com\/u-k-audit-watchdog-expands-investigation-into-pwc-over-babcock-audits\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/compliancechief360.com\/u-k-audit-watchdog-expands-investigation-into-pwc-over-babcock-audits\/\"},\"author\":{\"name\":\"Joseph McCafferty\",\"@id\":\"https:\/\/compliancechief360.com\/#\/schema\/person\/ec45c18ca18b7e347e047c24fb6eb113\"},\"headline\":\"U.K. Audit Watchdog Expands Investigation into PwC over Babcock Audits\",\"datePublished\":\"2022-01-17T16:35:55+00:00\",\"dateModified\":\"2022-05-19T17:03:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/compliancechief360.com\/u-k-audit-watchdog-expands-investigation-into-pwc-over-babcock-audits\/\"},\"wordCount\":277,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\/\/compliancechief360.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/compliancechief360.com\/u-k-audit-watchdog-expands-investigation-into-pwc-over-babcock-audits\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/compliancechief360.com\/wp-content\/uploads\/2022\/01\/pwc-logo-image.jpg\",\"keywords\":[\"Enforcement Actions\"],\"articleSection\":[\"Articles\",\"Featured News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/compliancechief360.com\/u-k-audit-watchdog-expands-investigation-into-pwc-over-babcock-audits\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/compliancechief360.com\/u-k-audit-watchdog-expands-investigation-into-pwc-over-babcock-audits\/\",\"url\":\"https:\/\/compliancechief360.com\/u-k-audit-watchdog-expands-investigation-into-pwc-over-babcock-audits\/\",\"name\":\"U.K. Audit Watchdog Expands Investigation into PwC over Babcock Audits - 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