WH Smith, the UK-based retailer known for its presence in travel locations including airports, has lowered its profit forecast for the North American market this fiscal year following the discovery of an accounting error. The company admitted to overstating profits by approximately £30 million, or 40%, due to accelerated recognition of supplier income, specifically discounts from suppliers. This accounting blunder has drawn comparisons to previous retail scandals such as Tesco in 2014 and Carillion. The error has led to a sharp decline in WH Smith's shares, which plunged by up to 42%, wiping nearly £500 million off the company's market value. The incident has raised concerns about the effectiveness of the board, non-executive directors, audit committee, and internal auditors. WH Smith's expansion efforts in the US are now facing challenges amid this financial reporting issue, which has undermined investor confidence and the company's investment case.