The broadcasting corporation has spent without weighing the costs and benefits, said the committee. The BBC, which receives £3.5bn a year in public money, is defending itself on talent costs.
The PAC also criticised the confidentiality agreements between the BBC and its top stars. It slammed the Corporation for not being transparent enough in offering information to the committee on several occasions.
The committee chairman criticised the government, which, although recognising the need for changing current audit practices at the BBC, postponed doing so until 2016. The BBC Trust responded by saying it seriously works towards ensuring value for money for licence fee-payers.