FRC investigating Grant Thornton's Sports Direct audits
Mike Ashley's Sports Direct allegedly made hundred of thousands of pounds in undisclosed payments to his brother's company, Barlin Deliveries
The Financial Reporting Council (FRC) is currently conducting an investigation into Grant Thornton’s audits of Mike Ashley’s Sports Direct for the financial year ending April 2016.
The investigation has arisen because Sportsdirect.com Retail reportedly used Barlin Delivery to provide deliveries to their customers and made hundreds of thousands of pounds in undisclosed payments to the logistics company.
A High Court judge has now ordered Sports Direct to hand in documents and emails that were originally claimed to be legally protected.
John Ashley, brother of Mike Ashley, was owner and a director of Barlin Delivery during the period of time which the FRC is looking in to.
The FRC will investigate the behaviour of Grant Thornton and the employee involved regarding the failure to disclose the relationship between Sports Direct and Barlin.
Sports Direct wrote in a statement: “The company would like to clarify that Sports Direct itself is not the subject of an investigation by the FRC, which has jurisdiction over accounting firms and accounting professionals.
“Sports Direct is a witness in an FRC investigation, details of which were made public by the FRC on 28 November 2016. This court application relates to the FRC’s requests for the provision of certain documents.”
Grant Thornton is not commenting at this time.