PwC faces TJ Hughes audit doubt
Discount retailer TJ Hughes is considering whether to drop its auditor, PricewaterhouseCoopers, following the overstatement of the company's stock figures.
A spokesman for the retailer said today:’Clearly it’s an issue which will be under consideration, but there has been no decision taken either way.’
PwC declined to comment saying that it could not discuss client affairs.
Finance director Tony Potter resigned from the company in early March as the after the discrepancy came to light following the implementation of a new stock management control system and a year end review.
In the company’s preliminary results to 27 January 2001, figures for 2000 were readjusted.
As a result of the problems, a £2.83m provision was been made against stocks. Additional provision of £0.8m has been made against the value of stocks more than 12 months old
Pre-tax profits were £4.2m, down from a restated £6.0m in the previous year.