The accountancy firm which gave BHS a clean bill of health days before it was sold for £1 have been slapped with a £6.5million fine –and the bean-counter responsible has been banned from auditing for 15 years.
The Financial Reporting Council said PwC and one of its former senior partners, Steve Denison, had ‘admitted misconduct’.
Denison, 53, who is chairman of Yorkshire County Cricket Club, has been fined £325,000 for his role in the saga, with a 35 per cent reduction granted for early settlement.
The Financial Reporting Council has announced the penalties against PwC and senior partner Steve Denison over their audit of BHS
He reportedly left PwC last week, having worked at the firm for 33 years.
PwC had been facing a £10million fine, but this was reduced by 35 per cent as they settled the matter early.
The FRC said PwC faced a ‘severe reprimand’ and had to update its practices to ensure audits of ‘high risk’ or high-profile companies were subject to an ‘engagement quality control review.’
PwC came under fire for signing off BHS as a going concern days before it was sold by retail tycoon Philip Green to serial bankrupt Dominic Chappell for £1 in 2015.
About a year later BHS collapsed with the loss of 11,000 jobs and a black hole in its pension fund.
PwC came under fire for signing off BHS as a going concern days before it was sold by retail tycoon Philip Green, left, to serial bankrupt Dominic Chappell, right, for £1 in 2015
Green agreed to pay £363million into the fund last February.
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.’
The spokesman added: ‘At its core this is not a failure in our audit methodology, the methodology simply was not followed.’
Fined: PwC has been fined £6.5m for its role in the BHS saga