Inquiry by Financial Reporting Council concerns firm’s 2022 accounts
The Financial Reporting Council (FRG) is investigating an accountancy firm for an audit of the doomed contractor ISG.
ISG collapsed last September with debts of up to £1.1bn, after an attempted sale fell through.
Yesterday, the UK’s independent regulator of auditors and accountants announced it had commenced an investigation of MacIntyre Hudson LLP (MHA), relating to its audit of ISG’s accounts for the year ended 31 December 2022.
The decision was made at a meeting of the FRC’s conduct committee on 21 January 2025 and the investigation will be conducted by the organisation’s enforcement division.
The FRC said the investigation does not relate to any persons or entities other than the auditor.
It said: “It would not be fair to treat any part of this announcement as constituting or evidencing an investigation into any other persons or entities.”
It’s not the first time in recent years that MHA has been looked at by regulators.
>> Read more: Downfall of ISG: how and why it collapsed
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Last July, the FRC imposed sanctions against MHA and two of its employees in relation to its audit of another firm, MRG Finance UK PLC.
A month later in August, it was censured by the FRC for failing to notify the watchdog of rule breaches by firms it had audited which could have put customers’ money at risk.
A spokesperson for MHA said: “MHA is committed to audit quality and we will be co-operating fully with the FRC as part of this investigation.”
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