BCCI: auditor hit with £1m in fines and costs

BCCI: auditor hit with £1m in fines and costs

Watchdog penalises Price Waterhouse for 'inappropriate' audit opinion

A fine and costs totalling nearly £1m has been imposed on Price Waterhouse
after the Joint Disciplinary Scheme found it had inappropriately given
unqualified audit opinions on BCCI.

The watchdog said it has fined the firm, which became PricewaterhouseCoopers
in 1998, £150,000 and imposed costs of £825,000 in relation to the audits of
BCCI by the firm’s Cayman Islands office in 1987, 1988 and 1989.

The report said audits for all three years were unqualified inappropriately
because they failed to properly disclose the ‘related party relationship’
between BCCI and another Cayman Islands group ICIC.

In failing to disclose the related party relationship PW was effectively in
breach of International Accounting Standard 24.

BCCI effectively controlled ICIC, even though its staff benefit fund was a
major shareholder in the bank. Sums from the ruler of Abu Dhabi deposited with
ICIC for investment, were also stolen as part of BCCI’s elaborate frauds.

The JDS said there was no question as to the honesty and integrity of PW
staff on the BCCI audit.

PwC chairman Keiran Poynter said: ‘Throughout this matter we have
consistently said that Price Waterhouse was deceived, as indeed criminal
convictions have proved.’

Related Articles

New FRC Corporate Governance Code focuses on culture and diversity

Audit New FRC Corporate Governance Code focuses on culture and diversity

6h Lucy Skoulding, Reporter
PwC ordered to pay $625.3m over failure to detect Colonial Bank fraud

Audit PwC ordered to pay $625.3m over failure to detect Colonial Bank fraud

2w Alia Shoaib, Reporter
FRC to investigate KPMG’s Conviviality audit

Audit FRC to investigate KPMG’s Conviviality audit

2w Alia Shoaib, Reporter
June news roundup with Alia Shoaib

Audit June news roundup with Alia Shoaib

2w Alia Shoaib, Reporter
FRC opens investigation into Deloitte’s audits of SIG

Audit FRC opens investigation into Deloitte’s audits of SIG

3w Alia Shoaib, Reporter
PwC auditor spent just two hours on BHS audit, says chairman

Audit PwC auditor spent just two hours on BHS audit, says chairman

3w Alia Shoaib, Reporter
FRC reports an “unacceptable deterioration” in KPMG audit quality

Audit FRC reports an “unacceptable deterioration” in KPMG audit quality

4w Alia Shoaib, Reporter
PwC fined a record £10m over BHS audit

Audit PwC fined a record £10m over BHS audit

1m Alia Shoaib, Reporter