Inquiry into Itallian scandal
Watchdog investigates PwC’s BT audit
The Financial Reporting Council has begun an investigation into PwC’s audits of BT Group’s results during the period spanning the Italian accounting scandal.
BT was forced to write down the value of its Italian unit by £530m after the discovery of “inappropriate behaviour”.
PwC was BT’s auditor since the company floated in 1984 but was replaced earlier this month by KPMG.
The FRC said: “The decision to investigate follows announcements by BT in relation to accounting issues in its Italian operations.”
Corrado Sciolla, head of continental Europe for BT, left the business.