Watchdog investigating Deloitte audit of Lookers after £19m vanishes from books
Britain’s accounting watchdog has opened an investigation into audits conducted by Deloitte of car dealership operator Lookers.
The investigation will look at financial statements for the years ended 31 December 2017 and 2018, the Financial Reporting Council (FRC) said in a statement.
Deloitte said it was taking the investigation seriously and was fully cooperating with the FRC.
“Audit quality is our priority and we are committed to maintaining the highest of professional standards,” Deloitte said.
The Big Four firm audited Lookers for 14 years, beginning in December 2006.
In 2020, Lookers found what it described as a “potentially fraudulent” £19m black hole in its 2019 financial results. When the news went public the troubled retailer’s shares were suspended as the probe into the missing £19m delayed the publication of its results.
Later that year Deloitte resigned as auditor and challenger firm BDO stepped in.