PWC and at least one of its partners could face a seven-figure fine and a total ban from auditing after a censure by the accounting watchdog, Joint Disciplinary Scheme (JDS).

The JDS, which investigates allegations of wrongdoing in the profession, is preparing to file a complaint against PwC over its work for TransTec, the engineering group founded by Geoffrey Robinson, the former Treasury minister. It has the power to levy an unlimited fine against wrongdoers and bar them from the profession.

PwC is likely to receive a draft complaint from the JDS within a matter of weeks. The accountant will get a month to respond to the charges in the complaint before a formal document is prepared by the JDS’s executive counsel.

After filing formal complaints a tribunal is expected to be established to decide whether the case against PwC is proven.

The tribunal can issue a strong reprimand, impose an unlimited fine or ban the accountancy group from providing auditing services. The JDS’s action comes after the publication last month of a long-awaited DTI report into events at TransTec. The report criticised PwC for an “inadequate audit” and for being “unwilling to challenge management”.

PwC, the world’s largest accountancy firm, would not comment yesterday, preferring to stick to the statement it issued on publication of the DTI’s report into the collapse of Transtec last month. “PricewaterhouseCoopers profoundly disagrees with and rejects the criticisms of it made by the inspectors. These criticisms do not reflect a proper construction of auditing standards nor are they supported by the evidence available to the Inspectors,” the statement said.

PwC was criticised in the DTI report for a “lack of scepticism” and the 1998 accounts, prepared by the group, were “inadequate”.

PwC was also accused of a “failure of will — a lack of robustness and strength or purpose”.

The report recommended that TransTec’s problems offered lessons for other companies in their relationship with their auditors. The accountants should communicate their reports to boards and shareholders in a way that could understood, it said.

Christopher Dickson, executive counsel for the JDS, would only say that the criminal investigation by the Serious Fraud Office (SFO), which began in May 2002, would have no bearing on the JDS’s actions.

The SFO is looking at whether charges should be brought, although Mr Robinson is not a suspect.

The DTI said yesterday that it was considering whether any of the directors should be barred from holding company directorships.

Richard Carr, the former chief executive, and William Jeffrey, the former finance director, were named by the DTI’s independent inspectors as unsuitable to be company directors.