Following last week’s announcement of the unprecedented £6.5 million fine levied by the FRC against Big 4 auditor PWC for its 2014 audit of the Taveta group accounts, Committee Chair Rt Hon Frank Field is writing to PWC and to senior partner Steve Denison - who took a 15 year ban from audit work and an additional £325k individual fine a part of the overall penalty – with a series of detailed questions about their handling of the discredited audit.
The 2014 audit of BHS was signed off just five days before the now infamous sale for £1 to Dominic Chappell’s RAL group - two months earlier than in previous years. In the letter to Mr Denison, the Chair asks “the quick completion of the BHS audit, signed off by yourself on March 6, was clearly an important step in the sale of BHS to Retail Acquisitions Ltd.
Whilst your evidence to us on 23 May 2016 confirmed that PwC had ‘no role in relation to the sale’, could you confirm whether you, or any other member of PwC staff were present at the meeting where the sale was agreed?”
On Monday the Committee tweeted a clip of Steve Denison’s evidence to its 2016 inquiry into the sale of BHS.