UK watchdog to investigate Deloitte’s audit of car dealership Lookers
Britain’s accounting watchdog has opened an investigation into audits conducted by Deloitte of Lookers, the North West car dealership operator.
The investigation will look at financial statements for the years ended 31 December 2017 and 2018, the Financial Reporting Council said in a statement.
The investigation will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure.
Lookers had been audited by Deloitte for 14 years.
However, last year Lookers uncovered accounting problems in one of its operating divisions.
Grant Thornton was brought in to conduct an investigation, which initially identified a £19m ‘black hole.’
In the event, publication has been delayed several times and trading of its shares were suspended.
The group has since appointed BDO as its new auditors.
The troubled dealer also appointed a new interim chief financial officer, Anna Bielby, earlier this year – but there is still no news on the groups’ interim results.
A Deloitte spokesperson said: “We take this investigation seriously and are fully cooperating with the Financial Reporting Council. Audit quality is our priority and we are committed to maintaining the highest professional standards.”