Auditor ‘sacking’ causes Schroders ‘pain’

Referring to the article in Sunday’s Observer a spokesman told ‘This [Observer article] has caused us much pain.’

He added: ‘We are still completing our investigation and have made no comment about the role of our auditors.’

Last week Schroders admitted it had made an error in the preparation of its accounts for its asset management business in 2000.

The company is believed to have overstated its total asset management profits, recorded at £149m, by £11m. Schroders said total asset management profits before tax for 2001 would be as much as 10% lower than market estimates of £70m

PwC was paid a £1.1m fee by Schroders for its audit work for the year ending December 2000. The firm was also paid £4.1m for non-audit work.

PwC were unable to comment at time of publication.

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