According to Accounting Today, two senior executives at Botswana supermarket chain, Choppies Enterprises Ltd., are suing former auditors PwC for 653 million rand ($40 million) for not signing off on the company’s 2018 accounts, leading to a share price collapse.
- What are the actual allegations?
- How much did Choppies shares lose between September 2018 and their suspension on Nov. 1 of that year?
- Do you think that the cost of being cautious is a good topic for auditors to debate?
Prinsloo, L. (2020). PwC hit by $40M lawsuit from Botswana supermarket chain. Accounting Today, Oct. 19 (Retrievable online at https://www.accountingtoday.com/articles/pwc-hit-by-40m-lawsuit-from-botswana-supermarket-chain?)