Inquiry by Financial Reporting Council concerns firm鈥檚 2022 accounts
The Financial Reporting Council (FRG) is investigating an accountancy firm for an audit of the doomed contractor ISG.
ISG collapsed last September with debts of up to 拢1.1bn, after an attempted sale fell through.
Yesterday, the UK鈥檚 independent regulator of auditors and accountants announced it had commenced an investigation of MacIntyre Hudson LLP (MHA), relating to its audit of ISG鈥檚 accounts for the year ended 31 December 2022.
The decision was made at a meeting of the FRC鈥檚 conduct committee on 21 January 2025 and the investigation will be conducted by the organisation鈥檚 enforcement division.
The FRC said the investigation does not relate to any persons or entities other than the auditor.
It said: 鈥淚t would not be fair to treat any part of this announcement as constituting or evidencing an investigation into any other persons or entities.鈥�
It鈥檚 not the first time in recent years that MHA has been looked at by regulators.
>> Read more: Downfall of ISG: how and why it collapsed
>> Read more: A huge blow to construction that raises urgent and difficult questions
Last July, the FRC imposed sanctions against MHA and two of its employees in relation to its audit of another firm, MRG Finance UK PLC.
A month later in August, it was censured by the FRC for failing to notify the watchdog of rule breaches by firms it had audited which could have put customers鈥� money at risk.
A spokesperson for MHA said: 鈥淢HA is committed to audit quality and we will be co-operating fully with the FRC as part of this investigation.鈥�
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