UK Watchdog Investigates PwC Over Audits of Retailer WH Smith

The UK’s accounting watchdog Tuesday announced it had launched an investigation into PwC’s audits of WH Smith plc, after the firm signed off on accounts subsequently found to have errors that inflated the retailer’s profit outlook.

The Financial Reporting Council said that it was investigating PwC’s audits of WH Smith’s accounts for the financial year that ended August 31, 2024. PwC signed off on the retailer’s accounts without issuing a warning, but the retailer subsequently said that it had over-stated both revenue and profit forecasts.

• PwC, also known as PricewaterhouseCoopers, said in an emailed statement that it was cooperating with ...