Regulator to probe audit of BHS

27 June 2016
Regulator to probe audit of BHS

PricewaterhouseCoopers (PwC) are going to be investigated by the accountancy regulator, over their audit of doomed retailer BHS.

The Financial Reporting Council (FRC) have said that the probe is looking at the year ending 30th August 2014, which just so happens to be the period when BHS was still owned by Sir Philip Green.

PwC said it would co-operate fully with the investigation... and Philip Green still doesn't like anyone looking at him directly, you'd assume.

Of course, it is well documented that Sir Philip sold BHS to Dominic Chappell's company Retail Acquisitions for £1 in March 2015, and 13 months after the sale, the chain collapsed.

There's no time-limit on the investigation, with FRC spokesperson Peter Timberlake said that it isn't possible to say how long the whole thing is going to take.

It depends on things like the co-operation of external parties, such as auditors and lawyers.

"It's obviously of high public interest and we will resolve it as soon as we can. But it's important that we do the right job," he added.

So what will happened in the end? Well, if the watchdog finds evidence of misconduct, they'll pass the case onto an independent tribunal, and if they agree with the findings, then they can issue fines and impose sanctions.

They can also expel people from accountancy as a whole.

They once hit Deloitte with a £3.5 million fine, regarding the collapse of MG Rover.

With BHS, administrator Duff & Phelps have had to call it a day, as they have been unable to find a suitable buyer for the chain of department stores.

TOPICS:   High Street News

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