PWC to be investigated over BHS audit

PricewaterhouseCoopers is to be investigated by the Financial Reporting Council (FRC) for the manner in which it audited BHS.

In May PWC was questioned by MPs as to why it described BHS as a ‘going concern’ when it signed off its accounts. Five days after doing so, the now-defunct retailer was sold to former bankrupt Dominic Chappell’s Retail Acquisitions Consortium.

Business, Industry and Skills committee member Richard Fuller called on the FRC to carry out the investigation.

The FRC has launched the investigation under the Accountancy Scheme. It will examine the conduct of PWC in relation to the audit of the financial statements of BHS Limited for the year ended 30 August 2014.

A PWC spokesperson says: “We will co-operate fully with the FRC in its enquiries.”