Accounting probe launched into RSM Tenon
A regulatory investigation has been launched into accounting errors at RSM Tenon and the role of its auditor PricewaterhouseCoopers.
The Accountancy and Actuarial Discipline Board is investigating unnamed individual accountants and PwC relating to the preparation, approval and audit of the annual accounts for RSM Tenon and its subsidiaries for the years ending 30 June 2010 and 30 June 2011.
The AADB, part of the Financial Reporting Council, says its also investigating “the preparation, approval and review of financial information in connection with the admission of RSM Tenon to the main market of the London Stock Exchange and the acquisition of Bentley Jennison”.
RSM Tenon has told the Financial Times it will co-operate with the inquiry.
PwC told the newspaper: “We will be vigorously defending our audits and other work carried out for the RSM Tenon Group.”
RSM Tenon issued a profit warning in December, with chairman Bob Morton and chief executive Andy Raynor stepping down in January. At the time the company said it was reviewing its financial reporting which may lead to restatements of its accounts for the year to 30 June 2011.
The information reportedly emerged during due diligence carried out by another auditing firm as part of a potential takeover by private equity firm HgCapital in the second half of last year.
PwC was fined £1.4m and reprimanded by the AADB in January for failing to notice billions of dollars of client funds had not been properly ringfenced by US bank JP Morgan Chase.
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