Indian Auditor Fined Over Work for Financial Firm That PwC Quit

An Indian accounting firm has been hit with a regulatory fine over its audit of Reliance Capital, a financial services company that a local PwC firm had flagged for possible fraud.

India’s National Financial Reporting Authority issued a fine of 30 million rupees ($359,000) on Pathak HD & Associates over its audit of Reliance Capital’s financial statements in fiscal year 2019, the watchdog said in a ruling published Saturday. The regulator called Pathak’s auditing work “grossly negligent.”

Pathak had acted as joint auditor of Reliance Capital alongside a local affiliate of accounting giant PwC, also known as PricewaterhouseCoopers. The PwC ...