The Financial Reporting Council (FRC) has today published a report detailing the eight allegations of misconduct that prompted the penalties against PwC in June.
The watchdog said that the Accounting ginat should have flagged doubts over the future of BHS in an audit that was completed just days before the loss-making retailer was sold for a token £1 in 2015.
According to the report, PwC had said at the time that BHS was a going concern, which means a company will remain in business for the foreseeable future.
Instead, PwC should have flagged that “a material uncertainty existed” about BHS’s ability to survive, the FRC added.
The watchdog had fined PwC a record £6.5m, and £325,000 to Stephen Denison, the partner in charge of BHS’s audit.