The UK’s Financial Reporting Council (FRC) has commenced an investigation into the statutory audit conducted by PricewaterhouseCoopers LLP (PwC) of the consolidated financial statements of WH Smith plc for the financial year ended 31 August 2024.
According to an official press notice published by the FRC on 9 June 2026, the decision to open the investigation was made at a meeting of the regulator’s Conduct Committee on 21 April 2026. The matter will be investigated by the FRC’s Enforcement Division under the Audit Enforcement Procedure.
FRC Clarifies Scope of Investigation
The FRC emphasised that the investigation relates solely to the relevant statutory auditor and/or statutory audit firm.
Importantly, the regulator stated that the opening of an investigation does not indicate that any findings of breach have been made, nor does it suggest that any such findings will ultimately be reached.
The FRC also noted that it would not be fair to interpret the announcement as constituting or evidencing an investigation into any other persons or entities.
The regulator did not disclose the specific areas of the audit that are under review.
WH Smith Faces Wider Challenges
The investigation comes during a period of heightened scrutiny for WH Smith, one of the UK’s most recognisable retail brands.
Founded in 1792, WH Smith has evolved from its traditional high street roots into a major international travel retailer, operating across airports, railway stations and hospitals in multiple jurisdictions.
Separately, the Financial Conduct Authority has been investigating WH Smith since late 2025 over potential breaches of listing and disclosure requirements following the discovery of inflated earnings within its North American business.
The company has also faced more challenging trading conditions, citing softer consumer demand. Earlier this year, WH Smith suspended its dividend and reduced its annual profit guidance.
WH Smith declined to comment on the FRC investigation.
PwC’s Continuing Regulatory Scrutiny
PwC has served as WH Smith’s auditor since 2015.
In response to media reports, a PwC spokesperson stated that the firm would fully cooperate with the FRC’s investigation.
The development adds to PwC’s existing regulatory challenges. The FRC is also conducting a separate investigation into PwC’s audit of Digital 9 Infrastructure relating to its 2023 financial year.
Why It Matters
The latest investigation highlights the increasingly rigorous oversight being applied to the audit profession in the United Kingdom.
While the opening of an investigation should not be interpreted as evidence of misconduct, it underscores regulators’ willingness to revisit significant audit engagements and reinforces the importance of audit quality, professional scepticism and robust governance frameworks.
For audit firms, boards and investors alike, the case serves as another reminder that scrutiny can continue long after financial statements have been signed and published.