Financial Reporting Council · United Kingdom

PricewaterhouseCoopers LLP: fine by Financial Reporting Council

Audit or matter: Babcock International Group plc (FY2019 and FY2020 audits)

What the regulator found

The FRC said PwC admitted serious and numerous breaches in areas including cash pooling, financing for an overseas contract, capitalisation of aircraft costs, goodwill impairment and two long term contracts, with failures of professional scepticism and audit evidence. The FRC said the breaches were not dishonest, deliberate or reckless. The FRC said material restatements were made in Babcock's FY2021 financial statements to correct prior period errors. PwC also received a severe reprimand and an order to take action to prevent recurrence.¹

Status: Final¹

Sources

1. Financial Reporting Council, FRC sanctions in relation to the audits of Babcock International Group plc (16 July 2026)