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9am Lowdown: PwC fined £5m over Connaught audit

12th May 2017
Editor AccountingWEB
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9am Lowdown

Good morning and welcome to Friday’s Lowdown.

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PwC fined £5m over Connaught audit

PwC has been hit with a record £5m fine from the FRC over its auditing of Connaught, reports the BBC.

PwC and retired audit partner Stephen Harrison were “severely reprimanded” after the FRC found evidence of misconduct. Harrison was also fined £150,000. A spokesman from PwC said it was sorry that it had fell short of professional standards. The Big Four firm added that since 2010 when the case started it has "worked hard to improve our procedures and processes".  

Connaught, a former FTSE 250 company, employed 10,000 when it went into administration in 2010, and had £220m of debt. PwC was also ordered to pay FRC’s legal costs.

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BT's 'challenging year' causes 4,000 job cuts

The BT accounting scandal in Italy has resulted in 4,000 jobs being cut at the telecoms company over the next two years and the chief executive’s pay falling by £4m.

According to the Daily Mail, BT has lowered its earnings forecasts for the year and scaled back its dividend plans as it posted falling profits. The group said the job cuts in the global division are expected to save £300m.

The accounting scandal at the Italian part of BT’s global services cost the group more than £500m. BT chief executive Gavin Patterson and former finance chief Tony Chanmugam have both been stripped of their bonuses. "This has been a challenging year, but BT remains well positioned for the future," the company said.

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Deliveroo alters couriers contracts

Deliveroo has changed the contract for its couriers, allowing the riders to “fit their work around their life rather than their life around their work", the takeaway delivery business announced.

As reported by the BBC, the change of contract also removed a clause which prevented couriers from challenging their self-employed status before an employment tribunal.

Dan Warne, UK managing director at Deliveroo, said: "The flexible work we offer means that our riders are their own bosses - they can choose not to work if it doesn't fit in with their own schedule, wear whatever branding they want and work for multiple companies at the same time."

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