The UK's Financial Reporting Council has launched an investigation into PwC's audit of WHSmith for the financial year ending 2024. This regulatory probe follows serious accounting issues at the retailer that led to its chief executive stepping down. PwC has audited WHSmith since 2015 and flagged accounting errors to the regulator as part of standard practice.

An independent review by Deloitte found WHSmith's revenues had been significantly overstated, with errors spanning several years. The accounting problems forced management to restate financial figures and triggered leadership changes. PwC's audit work now faces scrutiny from UK accounting authorities as the firm continues its standard practice of reporting potential issues identified during examinations.

The investigation raises concerns about audit quality at one of the UK's major retailers and tests the oversight of PwC, a member of the Big Four accounting firms. WHSmith declined to comment on the regulatory probe. PwC stated it would fully cooperate with the investigation, emphasizing its commitment to maintaining audit standards amid growing regulatory scrutiny.