The Frasers Group’s fashion brands, I Saw it First and Choice, face audit issues.
- Auditors could not verify £7m in wages for I Saw it First, raising concerns.
- I Saw it First lost payroll data during a system switch, complicating audits.
- Choice auditors found essential information missing due to ownership transition.
- These issues highlight ongoing concerns around Frasers Group’s governance.
The Frasers Group is currently navigating significant audit issues concerning its fashion brands I Saw it First and Choice. According to reports, auditors from Cooper Parry encountered difficulties verifying nearly £7 million in wages and salary payments related to I Saw it First. This challenge arose amidst a transition to the accounting systems employed by the Frasers Group.
I Saw it First disclosed that during the integration process, a limited set of payroll data was not successfully migrated onto the Frasers Group’s systems. Their spokesperson stated, “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.” This data loss has inevitably complicated the audit process.
Meanwhile, Hart Shaw, the auditing firm for Choice, found themselves at an impasse as crucial information required to complete their audit was unavailable. This brand, acquired from JD Sports by the Mike Ashley controlled entity at the end of 2022, appears to be experiencing lingering issues from its transition period.
These audit challenges have brought renewed scrutiny to Frasers Group’s corporate governance practices. The Financial Reporting Council (FRC) has previously investigated the accounts of Sports Direct International, now known as Frasers, identifying serious failings that resulted in a hefty fine of £1.3 million imposed on the company’s former auditor, Grant Thornton.
The audit difficulties faced by Frasers Group underscore persistent concerns over their governance standards.
