PwC failed to flag BHS risks ahead of retailer’s collapse, says regulator
Financial Reporting Council fines PwC a record £6.5m and former partner Stephen Denison £325,000, as well as banning him from auditing for 15 years
London — PwC should have flagged significant doubts over the future of BHS in an audit that was completed just days before the loss-making UK retailer was sold for a token £1 in 2015, ahead of its collapse a year later, a regulator said on Wednesday. BHS had 163 stores and employed 11,000 people when it collapsed in 2016, triggering a political firestorm. The Financial Reporting Council (FRC) watchdog fined PwC in June a record £6.5m ($8.3m), and former partner Stephen Denison £325,000. Denison was also banned from auditing for 15 years. After pressure from legislators, the Financial Reporting Council published documents on Wednesday detailing the eight allegations of misconduct that prompted the penalties. PwC said on Wednesday it was sorry its work fell well below the professional standards expected. "This is unacceptable and we agreed the settlement recognising that it is important to learn the necessary lessons," it said in a statement. PwC is one of the world’s top four auditor...
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