Frasers Group, a prominent name in retail, is currently facing significant audit challenges concerning two of its fashion brands, I Saw it First and Choice.
- Auditors at Cooper Parry were unable to verify nearly £7 million in wage payments for I Saw It First.
- Choice’s auditors, Hart Shaw, reported missing documentation crucial for completing their audit, posing further issues.
- The integration of I Saw It First into Frasers Group systems led to data loss during the transition, exacerbating audit difficulties.
- These audit challenges have prompted renewed scrutiny of Frasers Group’s corporate governance standards.
Frasers Group, a well-known entity in the retail industry, is facing audit issues with two of its fashion brands, I Saw it First and Choice. These challenges have arisen due to difficulties encountered during auditing processes that have heightened concerns about corporate governance within the group.
I Saw It First has been under scrutiny after its auditors, Cooper Parry, reported an inability to verify approximately £7 million in wages and salary payments. This situation was attributed to the loss of some payroll data during the transition of the brand’s accounting systems to those employed by Frasers Group. According to a company spokesperson, this data was not migrated correctly during the post-acquisition integration process, and the original system where it was stored is no longer operational.
Similarly, Choice has encountered its own set of auditing issues. The brand, which was acquired from JD Sports at the end of 2022, faced challenges when Hart Shaw auditors found that essential information required to complete their audit was missing. This lack of documentation adds another layer of complexity to the audit process for the company, casting a shadow over its financial reporting accuracy.
These audit challenges have reignited concerns regarding the corporate governance practices within Frasers Group. The Financial Reporting Council had previously investigated the accounts of Sports Direct International, which later became Frasers, and imposed a significant fine of £1.3 million on their former auditors, Grant Thornton, for serious failings in reviewing the retailer’s accounts.
The current audit challenges facing Frasers Group underscore the need for improved data management and corporate governance standards to restore investor confidence.
