The UK’s accounting regulator has launched an investigation into PricewaterhouseCoopers’ (PwC) audit of BHS when the chain was owned by Sir Philip Green.
The Financial Reporting Council (FRC) will examine PwC’s conduct in relation to the audit of financial documents in the year to 30 August 2014, it announced today.
This period comprises the last full set of accounts filed by the retailer while it was still part of Sir Philip’s Arcadia Group.
BHS subsequently collapsed into administration in April this year and is being wound down as a suitable buyer was unable to be found.
PwC said it will “co-operate fully with the FRC in its enquiries.”
The FRC website states it is an “independent, investigative and disciplinary body for accountants and actuaries in the UK dealing with cases which raise important issues affecting the public interest.”
A spokeswoman for the regulator declined to give a specific amount of time that the probe would take and said it would “be dependent on the depth of the investigation.”
Partners at PwC have already given evidence to MPs investigating the collapse of BHS.
The accountancy firm could be subject to sanctions and financial penalties if it is found by the FRC to have engaged in misconduct.