PwC partner banned for 15 years and fined £500,000 over BHS audit
A former PwC accomplice has been banned from audit work for fifteen years and fined £500,000 by a watchdog after admitting misconduct within the accounting agency’s audit of BHS.
Steve Denison left PwC earlier this month after 33 years on the agency. PwC was fined £10m by trade regulator the Monetary Reporting Council (FRC) and ordered to evaluate all insurance policies for dealing with high-risk corporations. The effective is the most important ever imposed by the FRC.
The fines might be decreased by 35 per cent to £6.5m and £325,000 respectively if the events conform to settle early.
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The sanctions comply with a two-year probe into PwC’s 2014 audits of BHS and Taveta Group, which owns various Sir Philip Inexperienced’s investments, together with Topshop.
The billionaire retail tycoon bought BHS for £1 in 2015, days after PwC signed off its accounts for the earlier yr. In April 2016 BHS collapsed, placing hundreds of individuals out of labor and leaving a £571m pension deficit. Sir Philip later agreed to pay £363m into the pension scheme.
“We recognise and settle for that there have been critical shortcomings with this audit work and that you will need to be taught the mandatory classes,” PwC mentioned.
“We’re sorry that our work fell effectively under the skilled requirements anticipated of us and that we demand of ourselves.”
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“At its core this isn’t a failure in our audit methodology, the methodology merely was not adopted.”
The companies mentioned that its audit failings didn’t contribute to BHS’ collapse.
The FRC additionally ordered PwC to provide annual studies for the following three years about its audit observe in Leeds, the workplace the place Mr Denison had been a accomplice.
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