The accountancy watchdog has launched a damning indictment against PwC over its handling of BHS after its £1 sale by Philip Green to the serial bankrupt Dominic Chappell.

A leaked version of the unpublished report by the Financial Reporting Council (FRC), seen by the Sunday Times, says that failures by the big four auditor meant there were “incomplete, inaccurate and misleading” statements regarding the financial longevity of BHS after it was sold off by Green.

The transfer of ownership to Chappell precipitated the store’s public downfall a year later, with a £571m hole cropping up in its pension fund, while 11,000 jobs were lost. Green later pummelled £363m into the BHS pension scheme following legal action by the pensions regulator, which ended as a result of the settlement.