The UK’s Financial Reporting Council (FRC) has launched a formal investigation into PricewaterhouseCoopers’ (PwC) audit of Digital 9 Infrastructure’s consolidated accounts for the year ended December 31, 2023.
The investigation began after the investigation was authorized by the regulator’s Conduct Committee.
According to a statement from the FRC, the case has been referred to the FRC’s enforcement division and will proceed according to the organization’s Audit Enforcement Procedure.
“The opening of an investigation does not indicate that the FRC has reached, or will reach any conclusion, of non-compliance with the Relevant Requirements,” the statement said.
Digital 9 Infrastructure is an investment trust listed on the London Stock Exchange. After several years of poor performance and governance issues, the company decided in early 2024 to close its doors.
According to its website, the company is currently in a managed liquidation, with InfraRed Capital Partners appointed as the company’s investment manager and alternative investment fund manager (AIFM).
InfraRed’s appointment came into effect in December 2024 upon receipt of required regulatory approvals and third-party consents.
PwC served as the trust’s external auditor since Digital 9’s listing in 2021. Reuters reported.
In response to the FRC investigation, PwC said in a statement emailed to the news agency: “We will cooperate fully with the FRC in their investigations. The quality of the audits is of paramount importance and we are committed to delivering high quality” audits.
Digital 9 did not immediately respond to a Reuters request for comment.
Earlier this month, the FRC updated its Public Interest Entity (PIE) Auditor Registration Regulations and related guidelines governing the PIE Auditor Register.
“FRC opens investigation into PwC audit of Digital 9 infrastructure” was created and originally published by The Accountant, a brand owned by GlobalData.
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