Overview
- The Financial Reporting Council has formally opened an investigation of PwC’s statutory audit of WH Smith’s consolidated financial statements for the year ended 31 August 2024 after its conduct committee decided to commence the probe on 21 April 2026.
- WH Smith disclosed last year that it had overstated North American headline trading profit by about £30 million, a mistake that wiped nearly £600 million off the company’s market value in one day and led to the resignation of its chief executive.
- An independent Deloitte review found several shortcomings in WH Smith’s accounts and audit processes, which helped trigger investor concern and calls from advisory group Pirc to vote against reappointing PwC.
- PwC said it will fully cooperate with the FRC investigation and affirmed its commitment to high-quality audits, while the firm faces reputational damage and growing investor scrutiny after notable votes against its reappointment.
- WH Smith remains under separate City‑watchdog scrutiny over listing and disclosure rules and has installed new senior leadership to stabilise the group as it focuses on its travel retail business.