The accountancy watchdog has launched an investigation into PwC over its audit of WH Smith, following a financial scandal at the retailer.
The Financial Reporting Council (FRC) confirmed that it has opened a probe into the Big Four beancounter’s audit of the retailer’s financial statements for the year to 31 August 2024.
WH Smith, which hopes to be a ‘one stop travel shop’ business after selling its High Street division, is already being investigated by the City watchdog over potential breach of listing and disclosure rules.
The retailer's former boss Carl Cowling stepped down last November after it was revealed that profits in its US division were overstated by £30million because income from suppliers was booked early.
But now PwC has come under scrutiny for signing off on WH Smith's accounts before the scandal was uncovered by experts at Deloitte.
