Raymond Doherty 20 Nov 2017 10:48am

FRC opens new Mitie investigation

The accountancy watchdog has opened a probe into Mitie’s 2016 financial accounts

The decision by the Financial Reporting Council (FRC) to open an investigation under the Accountancy Scheme is the latest blow for the troubled outsourcing company.

In August, the Financial Conduct Authority began investigating the timeliness of a profit warning made in September 2016.

The FRC is currently investigating Deloitte over “material errors” which led to Mitie having to write down £50m of profits. This led to a shareholder revolt over the reappointment of Deloitte as auditor.

The probe announced today relates to financial statements for Mitie Group plc for the year ended 31 March 2016. The FRC did not specify which aspect of the accounts is under investigation or if any individuals are involved.

In a statement Mitie said, “The company understands that the investigation does not relate to any current directors of Mitie [or] any former non-executive directors of Mitie.”

Mitie replaced Deloitte as auditors with BDO last month

In 2016, the company lost chief executive Ruby McGregor-Smith and four months later chief financial officer Suzanne Baxter resigned her role.