PwC and EY hit with multimillion-pound fines over LCF audit failures

The article discusses how accounting firms PwC and EY have been fined multimillion pounds due to audit failures pertaining to the London Capital & Finance (LCF) scandal. The Financial Reporting Council imposed fines of £5.1 million on PwC and £3.5 million on EY for not following auditing standards properly in the case of LCF. This reflects negatively on the firms’ reputation and highlights the importance of rigorous auditing practices. Share prices of PwC’s parent company could be impacted by the fine, while EY is a private partnership and not publicly traded. This situation underscores the significance of conducting thorough fundamental analysis on companies, including their auditing practices, before making investment decisions.