PricewaterhouseCoopers 'faces auditing inquiry'...

PricewaterhouseCoopers (PwC) is facing a probe after it failed to identify a fraud worth 21 million euros (£16.6 million), according to a report. Read original article.

The accounting giant had audited the Scottish mineral water subsidiary of Greencore for two years without spotting the fraud, Independent.ie says.It states the inquiry is to be conducted behind closed doors by the Institute of Chartered Accountants of Ireland and notes the findings will not necessarily be made public.

According to the news provider, PwC charged Greencore more than 1.6 million euros for its auditing services.It suggests the firm is actively reviewing the auditing contract and is now likely to seek legal redress as well as a refund of a proportion of the fees.

Greencore released a statement last month in which it said that, as a result of the "deliberate concealment of costs", its operating profit would be reduced by four million euros for 2006 and by eight million euros for 2007.In addition, it reported that its predicted operating profit for this year will be reduced by nine million euros.