Adds company context in paragraphs 5-6, shares in 7, WH Smith declines to comment in 4

June 9 (Reuters) - Britain's accounting regulator said on Tuesday it had launched an investigation into PricewaterhouseCoopers' audit of travel retailer WH Smith SMWH.L for the year ended August 2024.

The Financial Reporting Council (FRC) did not specify the focus of the probe.

The move comes as Britain's financial markets regulator has been investigating WH Smith since December over potential breaches of listing and disclosure rules. The retailer uncovered inflated earnings at its North America unit months earlier.

"We will be fully cooperating with the FRC's investigation," a PwC spokesperson said in an emailed response to Reuters. PwC has been WH Smith's auditor since 2015.

WH Smith, which is due to publish a trading update on Wednesday, declined to comment.

The firm has also been under pressure from a softer consumer market due to the Iran war, prompting it to suspend its dividend in April and cut its annual profit forecast.

The London-listed firm's shares were down 0.6% at 0755 GMT.

The FRC is separately also looking at PwC's audit of Digital 9 Infrastructure DGI9.L for its 2023 fiscal year.