UK to probe PwC's audits of BT after Italian scandal

Britain’s accounting regulator has said it would investigate audits by PwC of BT Group after a scandal was uncovered this year at the Italian operations of the telecoms group.

BT lost a fifth of its value in January after a £530m (€600m) writedown, partly due to financial irregularities found at the Italian division. The Financial Reporting Council, which can fine auditing firms and accountants and ban individuals from the accountancy profession in England and Wales, said it would investigate PwC’s audits from 2015 to 2017.

FRC is now expected to gather evidence before drafting any formal complaint. FRC has open investigations into each of the “Big Four” global accounting firms, which include PwC. The four firms audit more than 95% of the biggest 350 London-listed companies, despite efforts to draw in new competitors.