The UK Accountancy and Actuarial Discipline
Board (AADB) is to launch an investigation into the conduct of
mid-tier accounting firm RSM Tenon and its auditor PwC UK, in
connection with the firms recent financial reports.
According to AADB, the aim of the
investigation is to focus on “the preparation, approval and audit
of the financial statements of RSM Tenon Group and its subsidiary
companies for the years ended 30th June 2010 and 2011”.
RSM Tenon, the only UK accounting firm listed
on the London Stock Exchange, reported a 9.3% drop in revenue to
£107.8m in the six months leading to 31 December 2011, a poor
performance largely ascribed to ongoing inefficiency in the
integration of RSM Bentley Jennison, acquired in December 2009.
The firm has had to cut staff and service
lines, as well as change its executive team, in reaction to the
downturn in performance.
Meanwhile, doubts have been raised over the
audit and approval of RSM Tenon’s financial statementsin this
troubled period of trading, leading to the current AADB
AADB commented that it would be seeking to
clarify “the preparation, approval and review of financial
information in connection with the admission of RSM Tenon Group to
the main market of the London Stock Exchange and the acquisition of
RSM Bentley Jennison.”
Following AADB’s announcement, RSM Tenon
auditor PwC UK committed to defending its actions in connection to
“We will be cooperating fully with the AADB
investigation. We will be vigorously defending our audits and other
work carried out for the RSM Tenon Group,” PwC UK said.