FRC Launches Financial Probe Into Mitie's Accounts

The Financial Reporting Council (FRC) has launched a investigation into the financial statements of outsourcing firm, Mitie Group.

The UK audit watchdog said the company was under investigation in relation to the "preparation and approval" of the Group's financial statements for the year ended 31 March 2016.

FRC said this new probe is in addition to it's ongoing investigation into the conduct of Deloitte LLP's audit of Mitie under the Audit Enforcement Procedure (AEP).


In a statement, Mitie said: "Although the investigation is into Members (i.e. persons who are regulated by the FRC, including inter alia members of the Institute of Chartered Accountants in England and Wales) and not Mitie itself, the FRC's announcement failed to state this expressly, which has caused a number of market commentators to incorrectly assume that Mitie is being investigated.

We can confirm that this investigation is not into Mitie itself and that Mitie is not the subject of any new FRC investigation.

"We can further confirm that the investigation does not relate to any current directors of Mitie, any former non-executive directors of Mitie or Sandip Mahajan (who recently stepped down from his role as Group CFO)."

(LM/MH)