RSM Tenon audits see PwC facing an investigation

PwC faces investigation over RSM Tenon audits

PricewaterhouseCoopers is being investigated over its audits of crisis-hit corporate finance firm RSM Tenon.

By Harry Wilson, Banking Correspondent
6:17PM BST 13 Aug 2012

One of the country’s big four accountants is facing an investigation by the sector’s regulator into its auditing of crisis-hit RSM Tenon less than nine months after being hit with a record fine over failures in its work for JP Morgan.

PricewaterhouseCoopers is being investigated by the Accountancy & Actuarial Discipline Board (AADB) over possible rule violations in the audits of corporate finance advisory firm RSM Tenon for the two years period ending June 2011.

The AADB said in a statement it would look at the “preparation, approval and audit” of RSM Tenon’s financial statements after the company said it had discovered “significant errors” in its 2010 accounts.

Also under the spotlight will be the financial information provided by RSM Tenon at the time of its transfer from AIM to the main market of the London Stock Exchange in mid-2010, as well as the acquisition of chartered accountants RSM Bentley Jennison.

“We will be cooperating fully with the AADB investigation. We will be vigorously defending our audits and other work carried out for RSM Tenon Group,” said PwC in a statement.

The investigation of PwC comes after the firm was fined a record £1.4m in January for failures in its audits of client money accounts at JP Morgan that led to customers’ money becoming mixed up with the bank’s own funds.

News of the latest investigation came as PwC was hired by G4S to conduct a review of its failure to provide enough security staff for the London Olympics.

The highly public failure by G4S forced the government to call in thousands of troops to perform security duties that G4S staff were meant to have done. G4S said yesterday it would make a £2.5m donation to the Armed Forces as a “goodwill gesture”.

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