PwC partner banned over BHS audit

PwC partner banned over BHS audit

Denison, who was also banned from audit work for 15 years, left PwC in June after a almost 33-year career there, according to his LinkedIn profile.

The FRC confirmed on Tuesday that it had taken action in relation to the BHS audit for the year to Aug 30 2014 following a two-year investigation.

The regulator fined PwC £10m, reduced to £6.5m for early settlement.

The high street firm's collapse resulted in the loss of around 11,000 jobs across the United Kingdom, with The Pensions Regulator and the government's Insolvency Service later conducting formal investigations.

A spokesman for PwC said: 'We recognise and accept that there were serious shortcomings with this audit work and that it is important to learn the necessary lessons.

'We are sorry that our work fell well below the professional standards expected of us and that we demand of ourselves'.

She said: "At its core this is not a failure in our audit methodology, the methodology simply was not followed".

At a 2016 inquiry by MPs into BHS' collapse, Denison said he had valid reasons to label BHS' accounts a "going concern" shortly before the sale went ahead.

The regulator said that in addition to the financial sanctions and a "severe reprimand" it has asked PwC to monitor its Leeds-based audit practice and provide detailed reports to the FRC for the next three years, while ensuring that all audits of high-risk non-listed companies or high-profile companies are reviewed for quality.

PwC added that it had overhauled its monitoring procedures.

The failure of BHS was the biggest collapse in the British retail industry since the demise of Woolworths in 2008.

BHS's pension deficit had ballooned to £571m by the time the retailer went into administration in April 2016.

It has asked whether the FRC will investigate PwC's audit of the accounts of Taveta, the Sir Philip Green-led former parent company of BHS that sold the department store to the former bankrupt Dominic Chappell in 2015.

Last year Green paid £363m to BHS's pension schemes.

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