KPMG resigns as Poundworld auditors

by Richard Crump

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06 Feb 2014

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KPMG has resigned as auditors of single-price retailer Poundworld after it emerged the firm alleged it had been provided with "misleading information" during its audit of the company's 2013 accounts.

In a letter filed at Companies House last month, KPMG said it had "significant concerns" about the conduct of management in light of material, undisclosed adjustments being made to the company's stocktake results.

"The year-end stocktake results provided to us by the company were misleading in that they were subsequently found by us to have been materially adjusted to include additional entries which increased the value of the stock above the value initially presented to the company by a third party stock taking company which carried out the stocktake," KPMG said in its resignation letter.

"The adjustment to the amount and value of stock was not disclosed or explained to us when the results of the stocktake were initially presented," KPMG said.

KPMG said it was able to complete the audit and sign off the accounts, but felt it had to resign "in light of the deterioration" of its relationship with senior management.

Poundworld was not immediately available for comment.

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