Patisserie Valerie chooses RSM to succeed Grant Thornton as auditor
RSM will audit Patisserie Valerie's accounts as the fraud scandal continues to unfold
Seventh largest UK accountancy firm, RSM, have confirmed they will take over as Patisserie Valerie’s new auditor, according to Sky News.
RSM will succeed Grant Thornton as the cake chain’s auditor, as the latter are currently being investigated following their failure to notice fraud on the company’s accounts for several years.
Patisserie Valerie’s search for a new auditor was a frantic one seeing as some of the big accountancy firms refused to tender for the company.
Grant Thornton is currently under investigation by the Financial Reporting Council (FRC). The Serious Fraud Office are investigating Patisserie Valerie after £40m in its accounts was unaccounted for.
Sky News reports that this fraudulent discovery means estimated revenue and profits at Patisserie Valerie will plummet to £120m and £12m respectively for the year.
The scandal has led to a significant change in personal since October when the news broke. Former CFO, Chris Marsh, who was initially arrested then released on bail, has now stepped down and a new interim CFO, Nick Perrin, has taken on the role.
Paul May, now ex-CEO of Patisserie Valerie also resigned to make way for new chief executive, Steve Francis.
Just this week, the former Starbucks executive Rhys Illey, has moved into the role of group commercial director at the company.
Audit news comes thick and fast this week despite looming Christmas. The Competition and Markets Authority (CMA), finally published their review into the audit industry, taking scandals like Carillion, BHS, and Patisserie Valerie into account.
While Patisserie Valerie may still be going on, the CMA has started reflected on what needs to be done to change this ever risk-heavy industry.
The recommendations include preventing the Big Four from auditing 97 percent of big UK companies and introducing a law which separates audit from consulting services.
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The question remains whether this change of audit will help pull Patisserie Valerie out for good.