FRC investigation launched into PwC’s BHS audit

PWC’s previous audit work at collapsed retailer BHS is to come under scrutiny by accounting’s watchdog.

The Financial Reporting Council has launched an investigation into the conduct of the Big Four firm in relation to its audit of BHS for the year ending 30 August 2014.

This period leads up to the purchase of BHS by the Dominic Chappell-led Retail Acquisitions group.

BHS entered administration in April, before its liquidation was announced in June by insolvency practitioners from Duff & Phelps. The business has suffered to keep track with the evolving needs and wants of its customer base.

Sir Phillip Green, its former owner, recently told MPs in a joint-BIS/Work and Pensions Committee hearing that advisers – including Grant Thornton, Goldman Sachs and Olswang – should take accountability for effectively vouching for Chappell.

The FRC had been urged by MPs to launch an investigation. The watchdog has also come under pressure to act more decisively as to whether an investigation is required on KPMG’s audit work on HBOS.

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