Monday 12 August 2019 4:41 pm

PwC resigns as Staffline auditor following delay to 2018 results

Recruiter Staffline said today that is auditor PwC has resigned after it put its audit contract out to tender.

Staffline significantly delayed the release of its 2018 results after PwC received an anonymous email the day before their schedule released raising concerns about Staffline's accounting practices.

Read more: Staffline shares plunge after firm reveals £32.6m minimum wage hit

An investigation committee was established by Staffline to probe the allegations alongside an independent law firm.

In Staffline's annual report, PwC said: "there were some instances of non-compliance with related employment legislation and regulations but this has not resulted in any material liabilities or adjustments other than in relation to noncompliance with NMW [national minimum wage] regulations”.

Staffline made a £15m provision in its results in relation to historical breaches of minimum wage legislation.

Read more: Staffline on track for worst day in history as shares lose 50 per cent over Brexit worries

Other than in relation to minimum wage liabilities, PwC found no material adjustments to be made in the group's 2018 results or in its previously reported financial results.

PwC said conduct issues were identified during its probe and during the independent legal investigation. PwC said: "The company has disclosed that appropriate action will be taken in relation to these conduct matters."

In its resignation letter PwC said: "The reason we are ceasing to hold office is that the company will soon be undertaking a competitive tender process for the position of statutory auditor and we mutually agreed with the audit committee not to participate in this process."

Staffline shares fell nearly 2.5 per cent today to 160p.