PwC and RSM Tenon clash over audit work
Tenon lawyers question PwC's audit work. PwC hit back, saying problems were flagged to its audit committee
AUDITORS FOR RSM TENON have defended their role after concerns were raised about assurance given during the listed advisor’s struggles.
RSM Tenon lawyers said there were “serious concerns” about the quality of PwC’s audit work, reports The Times. However, PwC claimed that Tenon had misled the audit firm during its work, and had flagged up to Tenon’s audit committee accounting issues.
Accounts for RSM Tenon were restated during what has been a traumatic period for the firm. It entered into negotiations with its lenders over debt management following profit warnings, and CEO Andy Raynor left in February.
An approach by a potential purchaser of the firm saw Deloitte due diligence that saw the buyer eventually pull out of the deal, according to papers seen by The Times.
The argument comes at a crucial time for RSM Tenon. Accountancy Age revealed last week that former Rangers FC director Donald Muir had been drafted into Tenon to help it through tough efficiency saving headcount cut.
Muir was called into Rangers to help it restructure by the club’s lenders Lloyds. The bank is also the main lender to Tenon. He was described as a “safe pair of hands” by turnaround experts.
Tenon announced today that its banking facilities of £88m have now been signed and set in place. The firm “thanked” lender Lloyds for its “continued support”.
“We are making progress to return RSM Tenon to a stable and profitable position,” said Tenon CEO Chris Merry. “We will update the market on all aspects of the review of the business we are undertaking and related matters with the announcement of our results for the year ended 30 June 2012.”