PracticeAuditBCCI: 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

KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

4d Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2w Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2w Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2w Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

2m Alia Shoaib, Reporter
Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

Audit Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

2m Alia Shoaib, Reporter
Carillion inquiry: missed red flags, aggressive accounting and the pension deficit

Audit Carillion inquiry: missed red flags, aggressive accounting and the pension deficit

2m Alia Shoaib, Reporter
Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

Audit Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

2m Alia Shoaib, Reporter