Two Frasers Group brands face audit issues amid missing payroll data
The Financial Reporting Council (FRC) investigated the accounts of Sports Direct International, later renamed Frasers, for the 12 months to April 2016
Frasers Group has encountered issues with the audits of two of its brands, I Saw It First and Choice, according to reports from This Is Money.
Auditors from Cooper Parry working on I Saw It First were unable to verify almost £7m of wages and salary payments.
Meanwhile, auditors at Hart Shaw said crucial information needed to complete their work for Choice was missing.
I Saw It First stated that it lost some payroll data while switching its accounting systems to the ones used by Frasers Group.
A spokesperson for the group told This Is Money: “A limited set of I Saw It First payroll data can no longer be accessed because it was not migrated on to Frasers Group’s systems during the post-acquisition integration process, and the I Saw It First system which it was stored on no longer exists.”
The issues has sparked fresh concerns over the corporate governance at Frasers Group.
The Financial Reporting Council (FRC) investigated the accounts of Sports Direct International, later renamed Frasers, for the 12 months to April 2016.
As a result of this investigation the FRC fined the company’s former auditor Grant Thornton £1.3m for “serious failings” in reviewing the retailer’s accounts.
Retail Sector has contacted Frasers Group for comment.
