Aspects of Connaught ‘unauditable’, FRC case report finds

Elements of the information available to PwC over the course of its term as Connaught’s auditor were ‘unauditable’, according to FRC’s report on the case.

The social housing provider went into administration in 2010 and the FRC subsequently fined PwC £5m – its biggest sanction ever – over findings of misconduct. It also severely reprimanded the firm and Stephen Harrison, a retired PwC audit partner, who was fined £150,000.

The FRC case report found that an ‘unauditable’ paper proposed by Connaught Partnerships Limited’s finance operations director, referred to only as Mr A, was not rejected out of hand by the PwC auditors.

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