FRC probing Grant Thornton’s audits of firm’s accounts over three year period

Interserve

The Financial Reporting Council has launched an investigation into Grant Thornton’s audits of Interserve’s financial accounts. 

In a statement on its website the FRC said it was probing the audit of the company’s financial statements for the years 2015, 2016 and 2017.

The probe, which was confirmed this morning (11 April), comes a month after Interserve was forced into a pre-pack administration following a decision by shareholders to vote down a proposed rescue plan.

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The FRC is already investigating KPMG who was responsible for auditing Carillion’s accounts in the lead up to that firm’s collapse in January last year.

Interserve is already under investigation from the Financial Conduct Authority about the handling of its exit from the energy-from-waste (EfW) business.

The financial watchdog is investigating concerns about the way Interserve disclosed information over a seven month period from 15 July 2016 to 20 February 2017.

Interserve has already racked up losses of close to £230m on its EfW contracts with two schemes, at Derby and Margam in south Wales, still to be handed over.

 

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