The UK’s Financial Reporting Council (FRC) has initiated a formal investigation into PricewaterhouseCoopers’ (PwC) audit of Digital 9 Infrastructure’s consolidated accounts for the year ended 31 December 2023.
The inquiry began after the probe was authorised by the regulator’s Conduct Committee.
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According to an FRC statement, the case has been referred to the FRC’s enforcement division and will proceed under the organisation’s Audit Enforcement Procedure.
“The opening of an investigation does not indicate that the FRC has made, or will make, any findings of breach of Relevant Requirements,” the statement said.
Digital 9 Infrastructure is an investment trust listed on the London Stock Exchange. After several years of weak performance and governance concerns, the company decided in early 2024 to wind down.
According to its website, the company is currently in a managed wind-down, with InfraRed Capital Partners appointed as the company’s investment manager and alternative investment fund manager (AIFM).
InfraRed’s appointment took effect in December 2024 following receipt of the required regulatory approvals and third-party consents.
PwC served as the trust’s external auditor since Digital 9’s listing in 2021, Reuters reported.
In response to the FRC’s inquiry, PwC said in an emailed statement to the news agency: “We will cooperate fully with the FRC in its enquiries. Audit quality is of paramount importance, and we are committed to delivering high-quality audits.”
Digital 9 did not immediately respond to a Reuters request for comment.
Earlier this month, the FRC updated its Public Interest Entity (PIE) Auditor Registration Regulations and related guidance governing the PIE Auditor Register.
