The U.K. Financial Reporting Council (FRC) launched an investigation into the work of Big Four audit firm Deloitte at collapsed clothing retailer Joules Group.
The probe, announced Tuesday, is focused on the audit of Joules’s financial statements for the year ended May 30, 2021, according to the FRC. It does not currently relate to any specific individuals. The FRC did not provide any further specifics regarding the investigation.
“We will cooperate fully with the Financial Reporting Council’s investigation and remain committed to the highest standards of audit quality,” said a Deloitte UK spokesperson in an emailed statement.
Sales at Joules decreased last year amid economic uncertainty, resulting in the retailer facing administration. In December, rival Next announced its acquisition of the company for 34 million pounds (then-U.S. $42 million), a deal that prevented the closure of approximately 100 stores and loss of about 1,450 jobs.
The FRC last month announced an investigation into fellow Big Four firm EY regarding its 2021 financial year audit of online furniture retailer Made.com, which faced similar economic troubles in 2022. The company was acquired by Next in November.
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