PwC under fire over RSM Tenon audit

Big Four firm PwC is in the spotlight again over its audit of RSM Tenon during a turbulent period for the listed accountancy firm.

Following PwC’s grilling in connection with JP Morgan, the Accountancy & Actuarial Discipline Board (AADB) is now a “matter of weeks away” from an inquiry into the audit work carried out by PwC in relation to Tenon, according to The Times.

However an AADB spokesperson told AccountingWEB 

Continued...

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Comments
Tom 7000's picture

Tenon    1 thanks

Tom 7000 | | Permalink

I have said this before, you cannot expect the directors of companies to know how auditing and accounting rules work, they are not experts at this they are experts at making biscuits or steel girders or whatever they do, its just not right to expect them to understand the complexities....what do Tenon do?

Tenon

1146ben | | Permalink

Tom 7000 - I assume this is a a tongue in cheek comment?

Tenon are an audit & accountancy firm, with Andy Raynor having trained as an auditor. He must have signed off well over 100 audit reports during his time as a audit partner at BDO in Nottingham before it was bought by Tenon.

I struggle to think of a better background to have as CEO when it comes to knowing how auditing and accounting rules work, not to mention a substantial level of in house expertise to provide advice if required.

what Do they do/

max.lee | | Permalink

err.......... Audit and Risk management National Firm of the Year - British Accountancy Awards 2011

KenKLM's picture

Tenon

KenKLM | | Permalink

I thought directors have a legal responsibility to be aware of the business' current position and if they are incapable of understanding profit and loss , balance sheet and valuations then they should not get paid exhorbitant salaries to be in that position. I think the clue is in the number of executives jumping ship ? Business is not a huge mystery and auditors can only audit what is put in front of them . If the auditors then get it wrong , as the big four seem to on a regular basis , then I hope they are taken to the cleaners . The only problem with that is my PII will go up again !!

Tom 7000's picture

Tenon - accountants?    1 thanks

Tom 7000 | | Permalink

Are they? good lord, surely not... they can't be..... not with the amount of adjustments the new chap had to do to the old accounts after A R left. And besides it says they made a £70m loss,  if they were accountants they would be financially aware as Ken KLM says above  not to allow this to happen

Nope  1146 Ben you must be mistaken....can anyone else confirm this?

jndavs's picture

Tenon

jndavs | | Permalink

To quote from their website:
"A firm you can rely on
RSM Tenon offers intelligent accountancy and business advisory services"

They even do corporate recovery!

It would be laughable if it

TOC | | Permalink

It would be laughable if it wasn't tragic.

This shower have probably managed to give the impression that all accountants are numpties who can't look after their own finances never mind clients.

Time for change's picture

Well at least

Time for change | | Permalink

PWC and RSM Tenon can relax in the knowledge that "we're all in this together" (presumably the smelly stuff) just like George Osborne wants!

Quis custodiet ipsos custodes?

Roland195 | | Permalink

If for some reason I had to make corrections to my accounts to the extent allegedly the case here, would my own credibility as an accountant & auditor not be called into question?

 

 

With Tenon's restatement, the

The Limey | | Permalink

With Tenon's restatement, the real question is how much of the restatement was actually changes in estimates (and therefore should not have been restated)? It looked like a kitchen sink job to me.

no doubt when the proverbial

Katy D | | Permalink

no doubt when the proverbial does hit the fan PwC will be argiung that "it never lands evenly" !

The Minion's picture

I have just received    1 thanks

The Minion | | Permalink

a letter from RSM tenon inviting a client of mine to a seminar on how to build their business, value it and sell it on.

 

I assume this is one of the better examples of "Do as I say, not as I do...)

 

Oh and it also goes on to say they can minimise tax liabilities.

 

I assume this starts off with "Make a big loss then your tax worries are over!"

 

Presumably there is also a sideshow of "How to make a small fortune - start with a big one"

 

nganduk's picture

I can only imagine being

nganduk | | Permalink

I can only imagine being rejected a job offer by Tenon because I am I don't meet their "competence" levels.

Obviously the guys knew what they were doing, and I think it is called fraud!