PwC and KPMG among the firms sanctioned, as the FRC expands enforcement and steps up the use of “horizon scanning” techniques to spot potential problems.
Auditors are facing a much tougher environment when their work goes wrong. Figures released by the Financial Reporting Council, the UK’s audit watchdog, show that total fines imposed on auditors in 2018–19 almost tripled on the previous year, from £15.5m to £42.9m.
The news comes as the government considers measures to improve audit and the market for audit services following a number of reviews. The review came after concerns about audit resulting from the collapse of construction giant Carillion at the the end of 2017. One review, by Sir John Kingman recommended the FRC’s replacement with brand new regulator, the Audit, Reporting
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