In an email seen by Sky News, Kevin Ellis, chairman of PwC UK, reportedly blasted partner Steve Denison over his audit work for BHS, which last week led to a six-figure fine and 15-year ban for Denison and a record £10m fine for the Big Four firm (reduced to £6.5m).
In the email circulated to the firm’s nearly 1,000 partners, Ellis reportedly said his Denison’s work was “inadequate”.
The chairman outlined Denison’s numerous failings in overseeing the audit, such as “delegating too much work to a junior team member and only recording two hours of work during the completion stage.”
Furthermore, Ellis said that Denison had backdated his audit opinion, which said BHS was a going concern, by three days and that he “made a false statement on the audit file relating to the circumstances of the backdating”.
The audit report for BHS’ 2014 accounts was signed off on by PwC just days before Sir Philip Green sold the department store chain for £1.