PwC Investigated by U.K. Accounting Board Over RSM Tenon Audits

PricewaterhouseCoopers LLP is being investigated by the U.K. Accountancy & Actuarial Discipline Board for possible rule violations during its audits of RSM Tenon Group Plc.

PwC, along with “certain members of the Institute of Chartered Accountants in England and Wales,” is being investigated for audits carried out for RSM Tenon, a corporate finance advisory firm, for the years ending in June 2010 and 2011, the London-based accounting regulator said in an e-mailed statement.

The investigation will cover “the preparation, approval and review of financial information in connection with the admission of RSM Tenon Group Plc to the main market of the London Stock Exchange and the acquisition of RSM Bentley Jennison,” the AADB said.

RSM Tenon said it found “significant errors” in its 2010 earnings in a statement earlier this year and reduced its pre-tax profit by 12.1 million pounds ($19 million). The AADB fined PwC a record 1.4 million pounds in January for failures concerning reports on client-money accounts at JPMorgan Chase & Co.’s London securities unit.

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

Jackie McColl, spokeswoman for RSM Tenon, didn’t immediately respond to a voicemail seeking comment.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE