The FRC has not disclosed the specific elements of the WH Smith accounts currently under review. This investigation adds further pressure to the retailer, which has been grappling with internal accounting issues since discovering inflated earnings at its North American division. The company's market position has also been strained by a softening consumer environment, leading to a suspended dividend and downwardly revised profit forecasts earlier this year.

PwC, which has served as the auditor for WH Smith since 2015, confirmed it will cooperate fully with the regulatory inquiry. The retailer declined to comment ahead of a scheduled trading update. Beyond this case, the FRC is simultaneously examining PwC’s handling of the 2023 audit for Digital 9 Infrastructure. Shares in WH Smith dipped 0.6% in early trading following the announcement.