Link: Transtec special report
Accountancy Age understands that the Big Four firm has been mulling over the JDS’s findings for a number of weeks and that an announcement will be made during May.
The accountancy watchdog is expected to be highly critical of the firm, following last autumn’s publication of a department of trade report into Transtec’s collapse.
The report was damning of both Transtec directors, among them accountants, and PwC’s audit work.
While much of the DTI’s criticism was aimed at former directors of Transtec, it described PwC’s 1998 audit as ‘inadequate’. The JDS is unlikely to sway far from the DTI’s report. PwC was accused of being ‘unwilling to challenge management’ and as a result ‘failed to form an independent view on the 1998 accounts’.
The Big Four firm was appointed as auditor in October 1992 when still named Coopers & Lybrand.
Should the JDS lay complaints against the firm as expected, and they be proven, PwC faces a fine. But this could pale compared to the damage done to its reputation.
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