Frasers Group hit by audit woes at I Saw it First and Choice
Two of Frasers Group's fast fashion brands, I Saw It First and Choice, have been hit by audit issues.
Auditors at Cooper Parry were unable to verify almost £7 million of wages and salary payments at I Saw It First, which was bought by Frasers Group for £1 in July 2022.
Hart Shaw, auditors for Choice, which Frasers Group bought from JD Sports at the end of 2022, said crucial information needed to complete their work was missing.
I Saw It First told This is Money that it lost some payroll data while switching its accounting systems to the ones used by Frasers Group.
A spokesperson for the group told the publication: "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 audit issues have sparked fresh concerns over Frasers Group's corporate governance standards.
The Financial Reporting Council previously investigated the accounts of Sports Direct International – later renamed Frasers – for the 12 months to April 2016 and fined the company's former auditor Grant Thornton £1.3 million for "serious failings" in reviewing the retailer's accounts.