PwC is being sued by a racing car dealer for failing to spot alleged fraud. The UK accounting firm giant has been sued by the administrators of JD Classics, a racing car dealership, for allegedly failing to to spot fraud resulting in losses of over £41m.
PwC was accused by administrators from Alvarez & Marsal of “being negligent in their handling of accounts between 2016 and 2017” according to the Financial Times. The administrators also said the auditing firm’s failures cost JD Classics more than £41m, and the dealerships’s incorrect finances allowed it to build up costly liabilities.
The news comes as the audit profession has come under scrutiny for failing to raise red flags ahead of company collapses in the UK.