PwC fined $2 million over BT audit after fraud discovered in Italy

LONDON: Britain’s accounting watchdog on Monday said it has fined auditor PwC 1.75 million pounds ($2.12 million) after it failed to properly challenge UK telecoms group BT once fraud was discovered in BT’s Italian operations.

“The sanctions imposed in this case, where certain elements of the adjustments following a fraud were not subject to the required level of professional scepticism, underscore this message and will serve as a timely reminder to the profession,” Claudia Mortimore, deputy executive counsel, at the Financial Reporting Council said in a statement.