The UK accounting regulator has extended its investigation into PwC over its audits of Babcock International to include the defence company’s accounts for 2019 and 2020.
The Financial Reporting Council said the decision to investigate the audits was made last month following Babcock’s announcement of a review into contract profitability and its balance sheet.
The review resulted in about 140 adjustments totalling about £2bn that related to a combination of errors in previous accounts, changes in estimates and an updated accounting policy.
Britain’s second biggest defence contractor had announced the review last January as part of a sweeping overhaul under