PwC probed over its auditing of BarCap

One of the big four accountancy firms, PricewaterhouseCoopers, was today put under investigation by the profession's disciplinary board over its role as auditor to Barclays Capital.

It is the second time this year that PwC, headed by chairman Ian Powell, has been referred to the Accountancy & Actuarial Discipline Board following huge fines levied on its investment banking clients.

Today's referral follows the £1.2 million fine slapped on BarCap by the Financial Services Authority this year for mixing its own and clients' money over a period of eight years.

Investment banks have strict rules which require them to keep customers' money separate from their own capital.

The investigation will probe whether PwC's reports to the FSA complied with the regulator's rules.

A PwC spokesman said: "We will co-operate fully with the AADB investigation and we will be defending our work vigorously."

In August PwC was referred to the disciplinary board for its role in auditing JPMorgan after it had been fined £33.3 million for its failure to segregate client money.

The AADB can impose punishments ranging from unlimited fines to withdrawal of practising licences or certificates from firms or individuals if they are found in breach of rules. PwC still audits BarCap.