Raymond Doherty 11 Apr 2019 09:33am

Grant Thornton under investigation for Interserve audit

The Financial Reporting Council (FRC) has opened an investigation into Grant Thornton over its audit of Interserve

The troubled construction company, which was sold in a pre-pack deal last month after collapsing into administration, has been audited by Grant Thornton for the past five years.

Today the Financial Reporting Council (FRC) announced it has opened an investigation into “the audit by Grant Thornton UK LLP of the financial statements of Interserve Plc for the years ended 31 December 2015, 2016 and 2017. The investigation will be conducted under the Audit Enforcement Procedure.”

A spokesperson for Grant Thornton UK said, "I can confirm we have received correspondence from the [FRC] informing us of its decision to commence an investigation, and we will of course fully cooperate with them in this matter.”

In May, Deloitte was brought in by the government to monitor Interserve and to advise on public sector contracts.

The Cabinet Office had previously set up a team to keep an eye on the company in the wake of both the Carillion collapse and a turbulent 2017 in which shares plummeted after a profit warning in September.

It is further bad news for Grant Thornton, as the firm is under investigation for its audit of Patisserie Valerie.