Watchdog puts PwC audit of Berkeley under spotlight
Monday 16 September 2013
Accountant PwC became the latest "Big Four" firm to fall into the sights of the UK's industry watchdog today.
The Financial Reporting Council flexed its muscles again today as it launched an investigation into whether PwC was independent when auditing developer Berkeley in the year to 30 April 2012 due to a former partner, Glyn Barker, joining Berkeley in January 2012 as a non-executive director a month after leaving PwC.
The latest move comes a week after the FRC's independent tribunal fined Deloitte £14 million for failing to manage conflicts of interest over advice to doomed car maker MG Rover and the Phoenix Four.
The rules state that accounting staff leaving to join the board of a company which the firm audits should not be in the "chain of command" or have been involved in any material matters of audit judgment for at least two years before joining the company. Sources close to the situation said Barker had not been involved in the Berkeley audit or on the leadership team, but added that he collected feedback from the Berkeley board on PwC on its performance. It is unclear whether this was enough to put him in breach of the FRC's rules.
The independence of PwC is not in question for any other financial year. According to Berkeley's annual report, PwC earned £130,000 in audit fees for the year to April 2012 - dwarfed by the £1.32 million it picked up in non-audit fees for a variety of services, including tax advice and services on its cash return to shareholders.
In January 2012, PwC was fined £1.4 million for failing to pick up that investment bank JP Morgan had not being keeping client money separate from its own. Berkeley declined to comment while PwC said it was assisting the FRC with its investigation.
- 1 Reyhaneh Jabbari: Iran due to execute woman for murder of her alleged attempted rapist
- 2 Expert urges cat lovers to own just one animal each
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 The Simpsons death: Creator Al Jean would 'kill himself' before character like Homer or Lisa
- 5 British man raped while urinating in bushes at Oktoberfest beer festival in Germany
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
British man raped while urinating in bushes at Oktoberfest beer festival in Germany
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
'Women, walk wherever you want' posters taken down in Stamford Hill following 'unacceptable' signs separating men and women
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...