Deloitte Faces U.K. Accounting Probe Into Lookers Audits










Deloitte Faces U.K. Accounting Probe Into Lookers Audits














Stephanie Bodoni




(Bloomberg) — Deloitte LLP faces a probe by the U.K.’s accounting regulator into its audits of financial statements by Lookers Plc.



a person standing in front of a sign: LONDON, ENGLAND - OCTOBER 02: The Deloitte offices stand in 2 New Square on October 2, 2018 in London, England. The government has called for a review of the British auditing industry after a series of scandals including the collapses of Carillion and BHS revealed serious failures in the auditing process. The 'Big Four' accounting firms, which are Deloitte, PwC, Ernst & Young (EY) and KPMG audit the large majority of the UK's largest listed companies. (Photo by Jack Taylor/Getty Images)


© Photographer: Jack Taylor/Getty Images Europe
LONDON, ENGLAND – OCTOBER 02: The Deloitte offices stand in 2 New Square on October 2, 2018 in London, England. The government has called for a review of the British auditing industry after a series of scandals including the collapses of Carillion and BHS revealed serious failures in the auditing process. The ‘Big Four’ accounting firms, which are Deloitte, PwC, Ernst & Young (EY) and KPMG audit the large majority of the UK’s largest listed companies. (Photo by Jack Taylor/Getty Images)

The Financial Reporting Council on Friday said its enforcement division will investigate the audits for the years 2017 and 2018.

The probe comes amid criticism the Big Four accounting firms have been facing for years for their audit shortcomings. It has prompted the FRC to order the split of their accounting and consulting arms, which all four agreed to do by 2024.

“We take this investigation seriously and are fully cooperating with the Financial Reporting Council,” Deloitte said in an emailed statement. “Audit quality is our priority and we are committed to maintaining the highest professional standards.”



a person standing in front of a sign: LONDON, ENGLAND - OCTOBER 02: The Deloitte offices stand in 2 New Square on October 2, 2018 in London, England. The government has called for a review of the British auditing industry after a series of scandals including the collapses of Carillion and BHS revealed serious failures in the auditing process. The 'Big Four' accounting firms, which are Deloitte, PwC, Ernst & Young (EY) and KPMG audit the large majority of the UK's largest listed companies. (Photo by Jack Taylor/Getty Images)


© Photographer: Jack Taylor/Getty Images Europe
LONDON, ENGLAND – OCTOBER 02: The Deloitte offices stand in 2 New Square on October 2, 2018 in London, England. The government has called for a review of the British auditing industry after a series of scandals including the collapses of Carillion and BHS revealed serious failures in the auditing process. The ‘Big Four’ accounting firms, which are Deloitte, PwC, Ernst & Young (EY) and KPMG audit the large majority of the UK’s largest listed companies. (Photo by Jack Taylor/Getty Images)

(Updates with Deloitte response in last paragraph)

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