Pirc warns Tui not to use PwC

By ERIKKA ASKELAND
Published on 31/01/2013 00:00

INVESTOR advisory body Pirc has come out strongly against the reappointment of auditor PwC ahead of Tui Travel’s annual general meeting next week.

The group called for investors to vote against the re-appointment of the accountancy firm, deeming its continuing role as auditor as “unacceptable”.

Pirc said that PwC was the incumbent auditor when “fundamental flaws in internal controls” led to “serious reporting inaccuracies” at the travel giant.

In 2010, Tui’s newly-appointed auditor, KPMG, blew the whistle on a £117-million accounting error.

The revelations caused the firm’s shares to drop 11 per cent and led to the resignation of finance director Paul Bowtell. KPMG resigned two months later and PwC was re-appointed.

Tui’s AGM is due to take place on Thursday.