Catch Me If You Can

Friday’s Fiasco

This week all eyes are not only on WHSmith, but on PwC after WHSmith's US chief financial officer Kevin Gotthard identified accounting errors that overstated revenues for years. The resulting independent review by Deloitte found a "target-driven performance culture" with limited group oversight, leading to supplier income being booked when deals were agreed rather than when products actually sold.

PwC, which has audited WHSmith since 2015, signed off on all three years of dodgy accounts. The CEO has resigned, the entire US finance team is being replaced, and nearly £600 million has been wiped off the company's market value. The UK accounting regulator, the Financial Reporting Council,  is now weighing whether to formally investigate PwC's audit work. Sadly, this is the latest in a string of audit errors for PwC including Wyelands Bank, London Capital & Finance (ruled a Ponzi scheme by a court), and Tesco's accounting scandal. 

When a new CFO's team spots in months what three years of audits missed, something is fundamentally broken. 

If PwC asked for our advice, here’s what we would recommend:

Acknowledge the pattern publicly. Multiple audit failures across different sectors isn't coincidence. Tell the market what has changed in your quality control processes since Tesco, since London Capital, since Wyelands. If nothing has changed, that is what you need to address.

Stop waiting for the regulator to force transparency. You flagged this to the regulator but can go further. Publish what your audit procedures were, what you tested, and why these errors weren't caught. Waiting for an investigation will not help you retain your existing clients. 

Make amends. Commission an independent review of your audit methodology and publish the findings. Offer enhanced audit procedures to existing clients at no additional cost where similar risk factors exist. Establish an independent whistleblower channel where client finance teams can raise concerns about audit quality directly. 

The first rule of audit is that auditors provide oversight, they shouldn't require it. Repairing credibility won't come from waiting for a regulatory decision but by proving you can catch problems before clients do.

It’s probably time for WHSmith to run a new beauty parade.

The WayFinders Group repairs damage, rebuild trust, and restores performance after crises, disputes, or disruptive change.

Fodder from the floor

Did you know we have not one, but two podcasts?

Our OG podcast, The Longest Day®, started in Spring 2023 when Leah interviewed GB News CEO Angelos Frangopoulos. Since then, Leah has interviewed guests ranging from the UK's current Deputy Prime Minister and Lord Ed Vaizey to cricketer Mike Gatting OBE, disaster recovery expert Lucy Easthope, journalist Sophia Smith Galer,  several Olympians, and STEM pioneer Anne-Marie Imafidon MBE. The podcast explores how leaders navigate their longest days and the decisions that test their resilience.

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Coming in 2026: Season 7 – The Longest Day®:  Fixer Files

We're launching a special “Fixer Files” edition where leaders work through real professional dilemmas in confidential consultations with Leah. This isn't a traditional interview podcast; it's strategic guidance on repairing damage using restorative approaches in real time. We're currently seeking commercial sponsors for Season 7. If your organisation wants to support leaders navigating breakdown, crisis, and repair, get in touch. If you would like to be a guest, please email [email protected]. 

Dear Leah,

Our board is paralysing our crisis response. We're facing serious allegations about workplace culture, and we've developed a comprehensive strategy, but the board can't agree on anything.

The chair wants to "wait for legal advice," two non-execs are demanding the CEO resign immediately, the CEO is threatening to sue the complainants, and the founder is insisting "this will blow over if we ignore it." Meanwhile, the story is escalating, employees are leaking more damaging information, and our reputation is tanking. Every decision gets blocked by internal conflicts. How do we get the board to actually make a decision before this destroys us?

— Held hostage by paralysis

Dear Held hostage by paralysis,

Your board isn't disagreeing about crisis tactics, they're acting out their own unresolved conflicts whilst the organisation burns. The external allegations aren't your crisis. Your board's inability to function is the crisis.

Book Leah to speak at your next event about organisational repair: why unrepaired damage costs more than the crisis itself, how to spot the warning signs before trust collapses, and what repair looks like in practice.

Face the facts

We're organisational repair specialists. We repair damage, rebuild trust, and restore performance after crises, disputes, or disruptive change. Visit www.thewayfindersgroup.com for more information.