PwC under scrutiny after J.P.Morgan audit failures

Laura Miller
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The FSA has referred PricewaterhouseCoopers (PwC) for investigation after failing to spot "serious" banking failures at J.P.Morgan.

Last week, the US bank was fined £33.3m by the FSA, the largest ever meted out by the regulator, following a "serious breach" of client money rules. The FSA is now set to refer PwC to its regulators after the firm failed over a seven-year period to spot that J.P.Morgan had accidentally placed as much as £16bn of client funds into the wrong bank accounts, the Telegraph reports. Client money from J.P.Morgan's futures and options business was not placed in a ring-fenced account as it should have been and instead became intermingled with the bank's own funds from 2002 until last July. ...

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