In our monthly roundup of developments in audit and governance, FRC to investigate PwC over BT audits, KPMG resigns as Pret a Manger auditor, Mitie set to end Deloitte audit after 30 years
FRC to investigate PwC over BT audits
The Financial Reporting Council (FRC) is to investigate PwC’s auditing of BT Group, in light of the discovery of some £500m of losses in the telecom giant’s Italian subsidiary, which came to light via a whistleblower last October and were subsequently found to relate to several years of misreporting.
In its statement the regulator said: ‘Following completion of initial enquiries, the FRC has commenced an investigation under the audit enforcement procedure into the audits by PricewaterhouseCoopers of the consolidated financial statements of BT Group plc (BT) for the years ended 31 March 2015 to 2017 inclusive.
‘The decision to investigate follows announcements by BT in relation to accounting issues in its Italian operations.’
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