Investigation regarding the audits of Babcock International Group plc by PricewaterhouseCoopers LLP

News types: Policies and Responsibilities, Statements

Published: 17 January 2022

The Financial Reporting Council (FRC) has commenced an investigation into the statutory audits by PricewaterhouseCoopers LLP (PwC) of the consolidated financial statements of Babcock International Group plc (Babcock) for the years ended 31 March 2019 and 2020.

The decision was made at a meeting of the FRC’s Conduct Committee on 14 December 2021 and follows public announcements regarding the outcome of the Contract Profitability and Balance Sheet review (CPBS) commissioned by Babcock.

The investigation will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure.

The FRC has an ongoing investigation into aspects of the statutory audits by PwC of the consolidated financial statements of Babcock for the years ended 31 March 2017 and 31 March 2018. That investigation followed the outcome of an audit quality review.