05 Jul 2018
Britain’s SIG Plc on Wednesday named Ernst & Young LLP as its external auditor, days after UK’s accounting watchdog began an investigation into Deloitte LLP’s audit of the building products group.
Auditing firms Deloitte, PricewaterhouseCoopers LLP and EY have all caught the attention of the Financial Reporting Council (FRC) in recent weeks, as shock corporate failures such as Carillion and Poundworld raised questions over standards in the auditing industry.
The FRC said last week it began an investigation into Deloitte’s audit of two annual financial statements of SIG, focusing on cash and supplier rebates. The regulator is looking into the financial statements for the years ended Dec. 31, 2015 and 2016.
The probe comes as SIG reviews its historic accounts after a whistleblowing allegation of potential irregularities led to the suspension of some staff for overstating profits over several years.
Link to Reuters.
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