FRC to investigate PwC’s intu audits

The Financial Reporting Council has opened an investigation into PwC’s audits of intu’s financial results. The former shopping centre giant entered administration in June 2020 after abandoning an emergency £1.3bn cash call and sinking under £4.5bn of debt. Prior to that it was the subject to a £3.4bn takeover bid by Hammerson, which was proposed in December 2017 and abandoned in April 2018. The FRC said its investigation will cover the “consolidated financial statements of intu Properties for the years ended 31 December 2017 and 31 December 2018”. The FRC stated “the investigation does not relate to any persons other than the relevant statutory auditor(s) and it would not be fair to treat any part of this announcement as constituting or evidencing an investigation into any other persons or entities”. The decision was made at a meeting of the FRC’s conduct committee on 24 January, and the investigation will be conducted by its enforcement division under the audit enforcement procedure. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews