{"id":63260,"date":"2022-06-07T12:14:06","date_gmt":"2022-06-07T11:14:06","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=63260"},"modified":"2022-06-08T08:32:04","modified_gmt":"2022-06-08T07:32:04","slug":"the-icaew-has-now-earned-more-than-10-million-fines-paid-by-audit-firms-in-a-few-weeks-with-no-explanation-as-to-what-it-will-do-with-it","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2022\/06\/07\/the-icaew-has-now-earned-more-than-10-million-fines-paid-by-audit-firms-in-a-few-weeks-with-no-explanation-as-to-what-it-will-do-with-it\/","title":{"rendered":"The ICAEW has now earned more than \u00a310 million in fines paid by audit firms in a few weeks – with no explanation as to what it will do with it"},"content":{"rendered":"

A couple of weeks ago I highlighted the fact<\/a> that the Institute of Chartered Accountants in England and Wales (of which I am a fellow) had made more than \u00a355 million from audit fines, largely over very recent years, because they are, quite bizarrely, the beneficiary of the penalties charged on Big 4 audit firms (PWC, EY, Deloitte and KPMG) who seem unable to undertake their audits correctly any more.<\/p>\n

I asked them what they were going to do with these funds and was told, via Twitter:<\/p>\n

\"\"<\/p>\n

Today there is news that the ICAEW has now picked up another \u00a35 million in fines, as the Guardian reports<\/a>:<\/p>\n

\n

PricewaterhouseCoopers has received penalties totalling \u00a35m for failures in its audit of the construction firms\u00a0Galliford Try\u00a0and Kier, in the latest fines imposed on a \u201cbig four\u201d accounting firm.<\/p>\n

The Financial Reporting Council, the accounting watchdog, also imposed a \u00a3136,000 fine on the head of PwC\u2019s construction division and issued severe reprimands to\u00a0PwC, which it said had failed to adequately scrutinise long-term contracts at both builders, among other failings. It ordered the firm to review its audit work of listed companies that rely on long-term contracts.<\/p>\n

PwC will pay about \u00a33m related to its failings in the audit of Galliford Try, and \u00a32m related to its audit of\u00a0Kier.<\/p>\n<\/blockquote>\n

The PWC failing is basic. There is no excuse for not getting such accounting right. But what still intrigues me is what the ICAEW is going to do with these funds, which now exceed \u00a360 million in total.<\/p>\n

When are they going to say what the use might be?<\/p>\n

Might some research into what the public interest in accounting in the 21st century might be represent one socially relevant use of the funds?<\/p>\n

POST SCRIPT: The ICAEW has now advised that these fines will be going to the Treasury as they are under a different scheme to that from which the ICAEW benefits. The point of principle remains , however.<\/p>\n","protected":false},"excerpt":{"rendered":"

A couple of weeks ago I highlighted the fact that the Institute of Chartered Accountants in England and Wales (of which I am a fellow)
 Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67,26,81,99],"tags":[],"class_list":["post-63260","post","type-post","status-publish","format-standard","hentry","category-accountancy","category-accounting","category-auditing","category-icaew"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/63260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=63260"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/63260\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=63260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=63260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=63260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}