The Sunday Times reported that PricewaterhouseCoopers (PwC) is currently under investigation after a complaint was filed by a shareholder over an audit that the company conducted into an investment body that is based in Guernsey.
The paper reported that the accountancy giant was approached by the Institute of Chartered Accountants in England and Wales (ICAEW) because of some concerns that were raised regarding an audit that was conducted for Juridica Investments. The company is an AIM-listed vehicle which invests in lawsuits in the United States of America by funding claimants and then earning a share of the winnings after the trials.
The ICAEW is not allowed to release some comments on the ongoing investigations. It has the power to issue criminal convictions when some individuals and companies discredit accountancy.
The Sunday Times said that the investigation was looking at the audit of the accounts of Juridica way back in 2014. It will also be looking into the treatment of a loan repayment as a profit.
Last month, Juridica said that the company was already planning to delist and appoint some liquidators after the stock price of the firm steadily dropped since it was first listed 11 years ago. It was established by an American lawyer who is named Richard Field. Field, however, sold his stake in the company in 2015.
PwC said that it believed that the complaint was baseless. He added that it had asked to schedule a meeting with the audit regulator.
A spokesperson of the PwC disclosed: “The ICAEW is looking into a complaint it has received from a Juridica shareholder. We believe it is without merit and are meeting with the ICAEW to help it with its inquiries.”
On the other hand, a spokesperson for Juridica Investments was not immediately available reply to a request for comment regarding the matter.