PwC fined for Babcock audit failings including faking evidence

UK regulator says breaches found in ‘every area’ looked at in relation to audit of engineering firm’s accounts

The consultancy group PwC has been hit with a £7.5m fine over a string of serious breaches while auditing the engineering company Babcock’s accounts, including faking evidence related to a sensitive government contract.

The accounting regulator, the Financial Reporting Council, said breaches were found in “every area” it had investigated in relation to the audit of Babcock’s accounts for 2017 and 2018, with PwC repeatedly failing to either challenge management, gather sufficient evidence to confirm financial statements, or follow basic audit requirements.