UK accounting watchdog drops investigation into PwC over Barclays audits

The Financial Reporting Council had been probing PwC's role in reporting to the then Financial Services Authority over Barclays' compliance with client asset rules

PwC apologised for its auditing work falling below its standards (Reuters)

Britain's accountancy watchdog has dropped an investigation into PwC's role as auditor to Barclays.

The Financial Reporting Council (FRC) had been probing PwC's role in reporting to the then Financial Services Authority over Barclays' compliance with client asset rules between 2007 and 2011.

However, it said on Thursday that it is closing the probe after concluding that "there is not a realistic prospect" that a tribunal would make an adverse finding against PwC "in respect of the matters within the scope of the investigation".

It is not the first time this year that PwC has come under the FRC's microscope.

In June it dropped an investigation into PwC's role as Tesco's auditor during the supermarket's accounting scandal, on the same grounds that there would be no realistic prospect of a tribunal making an adverse finding.

In the same month, the watchdog opened an investigation into PwC's audit of BT following the telecoms giant's Italian accounting scandal.

Then in August PwC was slapped with a £5 million fine by the FRC over misconduct in relation to the audit of RSM Tenon.

PA