Debate Magazine

They Had It Coming

Posted on the 14 June 2018 by Markwadsworth @Mark_Wadsworth

From City AM:
Big Four accountancy giant PwC has been slapped with a record £10m fine from the Financial Reporting Council (FRC) for its work auditing retailer BHS prior to its sale for £1.
The PwC partner who conducted the audit, Steve Denison, is also facing a personal fine of £500,000 from the FRC relating to his work on BHS in the year to 30 August 2014. Denison is said to have left the UK’s largest accounting firm last week after more than 30 years on the job, according to reports from Sky News.
A statement from the FRC said that PwC and Steve Denison have admitted misconduct, and accepted "substantial fines and non-financial sanctions".

From experience, auditors will pick up low level fraud sooner or later, i.e. people robbing the petty cash, forging invoices and so on, and so we can assume they deter it to some extent, even though detecting/deterring fraud is not one of the main purposes of an audit. (The actual stated purposes of an audit are so vague and lofty as to be meaningless.)
When it comes to higher level fraud, auditors are either so useless they don't notice it; or they are actually complicit in it.
BHS wasn't like Enron, it went out of business because it was badly run, not because of actual malice or dishonesty on the part of the directors, that's not fraud. But auditors turning a blind eye to a potential bankruptcy after the event, in order to bank the big fat audit fees, is IMHO an actual fraud in itself.


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • There’s Finally a Right Answer for How Long a Sales Email Should Be

    There’s Finally Right Answer Long Sales Email Should

    Since the dawn of time (or at least, email marketing), integrated marketers have wondered, "How long should my sales emails be?" Finally, there's a right answer... Read more

    8 hours, 15 minutes ago by   Marketingtango
    BUSINESS, MARKETING & ADVERTISING
  • What I Wore: Bonjour!

    What Wore: Bonjour!

    This is what I wore yesterday when I was the guest speaker at a class on blogging and marketing at Howard University. When I got home, Karl snapped a few... Read more

    8 hours, 15 minutes ago by   Wardrobeoxygen
    FASHION, SELF EXPRESSION, SHOPPING
  • Setting Limits Is Definitely Not Fun!

    Recently I was at one of my Ask the Expert Parties (think Tupperware for parenting) where I start by asking the small group of parents assembled what their... Read more

    8 hours, 22 minutes ago by   Joanigeltman
    FAMILY, PARENTING
  • The Best PC Gaming Headsets for Gamers

    Best Gaming Headsets Gamers

    Gaming had caught the fancy of a growing number of individuals in India. According to a recent report, the gaming market in India is expected to record a... Read more

    8 hours, 49 minutes ago by   Travelrasoi
    TRAVEL
  • “I’ll Dance To The Government House After Saturday’s Election” – Senator...

    The Peoples Democratic Party (PDP)‘s candidate for the September 22 Osun governorship election Senator Ademola Adeleke, has said that he’ll be victorious at... Read more

    9 hours, 6 minutes ago by   Naijapary
    SOCIETY, A-CLASSER
  • This Week’s Meal Plan: Fish, Seafood and Vegetarian Dishes

    Our popular keto meal-plan tool gives you everything you need to succeed on a keto low-carb diet. Meal plans, recipes and shopping lists - no planning... Read more

    9 hours, 12 minutes ago by   Dietdoctor
    DIET & WEIGHT, HEALTH, HEALTHY LIVING, MEDICINE
  • Capital Idea

    Capital Idea

    Capitalism encourages a kind of racketeering among businesses, in my experience. Take the case of utility companies after a move. To date I have received well... Read more

    10 hours, 3 minutes ago by   Steveawiggins
    POLITICS, RELIGION, SOCIETY

Magazine