THE NEW auditor for retail chain Sports Direct has cleared out its top management team and reported itself to the regulator after discovering an error in its own accounts.
Challenger firm RSM scored a coup last year when it was appointed as auditor to FTSE 250 retailer Sports Direct — now renamed Frasers Group.
However, accounts for the year to 31 March for RSM UK Holdings — published this weekend on Companies House — showed the firm made errors in its provisions for professional liability claims in 2018 and in earlier years.
The errors had a net impact on profit of nearly £3.8m, RSM's accounts showed.
Last month, chief executive David Gwilliam, chief finance officer Nigel Tristem and chief operating officer Robert Ross resigned from their roles as a result of the error, first reported by the Sunday Times.
It is understood RSM reported the errors to audit regulator the Financial Reporting Council last month.
An RSM spokesperson said: "By way of response to these issues, the board made appropriate management changes.
"RSM remains in very strong financial health, well placed to capitalise on all the opportunities available to it in the market."
(c) 2020 City A.M., source Newspaper