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£10m fine slapped on accounting giant PwC for BHS audit branded ‘totally inadequate’

City & Finance Reporter for the Daily Mail

Fine: PWC signed off the books at BHS before the high street chain collapsed

Fine: PWC signed off the books at BHS before the high street chain collapsed

Fine: PWC signed off the books at BHS ahead of the top boulevard chain collapsed

The £10million fine slapped on accounting giant PwC has been branded ‘completely insufficient’ as drive mounts on regulators to get tricky on failing auditors.

Big Four accountant PwC has been hit with the fine by means of the Financial Reporting Council after it signed off BHS as a going worry in 2015 – simply days ahead of it used to be bought by means of retail mogul Sir Philip Green to serial bankrupt Dominic Chappell for £1.

They licensed the accounts on the High Street store in spite of understanding the sale would chop it off from an important give a boost to from Taveta. 

BHS collapsed a few yr later with the lack of 11,000 jobs and leaving a large black hollow within the pension fund.

PwC’s fine used to be diminished to £6.5million on account of its co-operation with the inquiry. Steve Denison, the spouse who oversaw the BHS audit, used to be fined £500,000 – later diminished to £325,000 – and banned from doing an identical paintings for 15 years.

Since April remaining yr the FRC has dished out fines of greater than £30million to auditors over botched paintings. 

PwC accounts for greater than two-thirds of the consequences, having been fined £5million for its paintings on Connaught and £five.1million for its audit of RSM Tenon.

Rival KPMG used to be this month fined £four.5million for its screw ups over scandal-hit Quindell.

But critics stated the fines have been tiny in comparison to auditors’ and companions’ income.

Frank Field MP, chairman of the paintings and pensions committee, stated: ‘The fine of £10m for 12 months’s audit of 1 corporate accounts for a complete 3rd of the entire monetary consequences imposed by means of the FRC during the last yr. 

‘Welcome as this obvious step alternate is, it’s nonetheless completely insufficient given the horror display at BHS.’

MPs have now written to the FRC to invite whether or not it’ll release a much broader investigation into PwC’s paintings on BHS dad or mum corporate Taveta – including that they’ll wish to see the fines higher.

Former BHS boss Chappell is known to be taking into account criminal motion over PwC’s discredited audit of the store. It is believed his argument centres on his use of the accounts that have been rubber-stamped by means of PwC as the foundation for his acquisition.

 

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