UK accounts watchdog probes Deloitte's audit of SIG's 2015, 2016 statements
Reuters
Published Jun 28, 2018 02:57AM ET
UK accounts watchdog probes Deloitte's audit of SIG's 2015, 2016 statements
(Reuters) - UK's accounting watchdog said on Thursday it began an investigation into Deloitte LLP's audit of two annual financial statements of SIG Plc (L:SHI) and is focusing on the audit of cash and supplier rebates.
The Financial Reporting Council (FRC) said it was probing financial statements for the years ended Dec. 31, 2015 and 2016 at the distributor of specialist building products in Europe.
SIG said in February it was undergoing a review of its historic accounts after a whistleblowing allegation of potential irregularities that led to the suspension of some staff for overstating profits over several years.
SIG said then its forensic review had revealed an overstatement for the year ended Dec. 31, 2016 and a further overstatement of up to 400,000 pounds before 2016. It added it was working with Deloitte to ensure correct accounting.
On Jan. 9, it first disclosed an overstatement of cash of about 20 million pounds at the end of December 2016 and about 27 million pounds as of the end of June 2017.
The FRC said on Thursday it delegated the investigation to the Institute of Chartered Accountants in England and Wales, which is Deloitte's recognized supervisory body.
SIG, which supplies insulation and roofing products, has been trying to strengthen its balance sheet by selling assets and reviewing costs, as it battles to recover from weak trading in its UK insulation, interiors and offsite construction businesses.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.