FRC Investigates Grant Thornton
The Financial Reporting Council (FRC), the independent regulator for auditors, accountants and actuaries in the UK and Ireland, has opened an investigation into Grant Thornton's audits of Interserve's 2015, 2016 and 2017 financial statements.
Grant Thornton, the world's seventh-largest accountancy firm network, served as Interserve's auditor before the British multinational construction and facility services group entered into a pre-pack administration with the agreement of its creditors last month.
Although Interserve assets have been transferred to a new company led by creditors RBS, HSBC and BNP Paribas, and venture capital firms Emerald Asset Management and Davidson Kempner Capital, many shareholders in quoted company Interserve Plc saw their holdings wiped out when the company's London Stock Exchange listing was suspended.
In November 2018, FRC opened an on-going investigation into the 'provision of materials' by KPMG in connection with its audit of Carillion for the fiscal year ending 2016.