MPs want the investigation into PwC's audit of BHS to be extended

Helen Cahill
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PwC's audit of BHS is now coming under scrutiny (Source: Getty)

MPs inquiring into the demise of BHS want the investigation of PwC's audit of the company's accounts to be extended.

The Financial Reporting Council's (FRC) investigation is looking into PwC's conduct in auditing BHS' accounts in the year ending August 2014, but Frank Field MP, chair of the Work and Pensions committee and Iain Wright MP, chair of the Business and Skills Committee, think this is "too narrow".

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Writing to Stephen Haddrill, chief executive of the FRC, Field and Wright said: "We welcome the FRC's announcement of an investigation into the conduct of PwC with regards to its audit of BHS accounts in the year ending August 2014.

"We do, however, have concerns that the scope of this investigation is too narrow and urge you to consider widening its scope."

The MPs want the investigation to cover previous years when PwC audited BHS' finances and signed the company off as a going concern.

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Seeking to unravel the complex web of companies involved in Sir Philip Green's retail empire, Wright and Frank called for the FRC to look at PwC audits of the accounts of other Taveta group companies with which the finances of BHS were linked.

"We also urge you to set a deadline for concluding your investigation and clarify what steps you intend to take to ensure the FRC's independence in conducting these important duties," they wrote.

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