Cattles accuses PwC over audit

FINANCIAL services group PwC is facing accusations from sub-prime lender Cattles, it emerged yesterday.

Cattles, which was sold to its creditors this year, has claimed in a court hearing that PwC’s audits of the firm between 2005 and 2007 led to a “gross misstatement” of the firm’s financial position.

Cattles made some £850m of unanticipated write-downs in 2009, pushing it through banking covenants.

PwC did not return a call for comment yesterday, but it has been reported that it will vigorously defend its work.