Lloyds TSB agreed to “remove” £800,000 of fees due to be paid to PwC from its 2008 accounts in order to avoid breaching internal rules governing auditor independence, according to documents revealed in a High Court battle.
According to The Times, the bank revealed that it would move fees due for “independent business reviews” of troubled companies conducted by PwC to a previous accounting period so that it could keep awarding the accountancy firm lucrative work without breaching a £2m limit imposed by Lloyds’ audit committee, internal emails suggest.
The effectiveness of auditors is heavily in the spotlight after the collapse of Carillion.
Accountancy firms are also facing widespread criticism for failures to curb reckless lenders in the run up to the financial crisis.
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