PwC was responsible for the 2017 and 2018 financial audits of Babcock International Group plc, an LSE listed multinational with highly sensitive UK government contracts. The FRC final settlement decision notice details a litany of failures in connection with these audits with breaches “identified in respect of every area of audit which
PwC audit of Babcock did not follow basic audit requirements
The firm has been fined £5.6m ($6.7m) for its failings, and two former partners have also been fined and sanctioned.