LONDON, (Reuters) – The Financial Reporting Council fined PwC approximately 5 million pounds ($6.22 Million) in a series of sanctions after an audit into the failures of Galliford Try and Kier construction companies.

Britain’s top accounting watchdog the FRC said that PwC’s Jonathan Hook and PwC’s audit partner Jonathan Hook failed to meet a variety of requirements. These included identifying and rectifying errors in Kier’s income statements and cash flow statements related to the presentation gains from corporate sales in 2017.

This led to misstatement in the financial statements of 2017.

PWC was given a 3.35million pound fine. It was also adjusted for aggravating or mitigating circumstances and reduced to less than 2 million.

Hook was penalized 90,000. Hook’s fine was adjusted for aggravating, mitigating, and deferred for the purpose of cooperation. The total amount due to Hook is just below 52.650 pounds

The FRC issued a separate statement and also penalized PwC as well as Hook for their breaches of Galliford Audits. This was after finding numerous auditing errors, including material variations and claims regarding contracts that were later found to be inappropriate.

Initially, the FRC had imposed a penalty of 5.5million pounds upon PWC for Galliford-Try errors. This was later adjusted to mitigate factors by 15% and then further reduced by 35% to approximately 3 million pounds.

Hook was given a reduced penalty and an adjusted penalty for his crime of 82.875 pounds.

FRC stated that it does not believe there were any breaches of company audits that were deliberate, dishonest or reckless. Hook and PwC provided exceptional cooperation in their investigation.

($1 = 0.8039 pounds)