PracticeAuditDeloitte investigated over MG Rover audit

Deloitte investigated over MG Rover audit

Big Four firm faces AIDB probe over audit of car manufacturer's accounts and provision of advisory services

Accounting’s watchdog is to launch an investigation into Big Four firm
Deloitte over its role as auditor of collapsed car manufacturer MG Rover.

The Accountancy Investigation and Discipline Board, part of the Financial
Reporting Council, announced today that it would be looking into the actions of
Deloitte in relation to its audit of the 2003 accounts of the company and its
parent Phoenix Venture Holdings, as well as other advisory services that were
provided.

It is thought that the AIDB is concerned about tax avoidance across MG
Rover’s complex corporate structure, and about fees paid to Deloitte for
additional services.

The FRC had already expressed concerns over the Midlands car maker’s accounts
in its report to the DTI, which led Alan Johnson, the Trade and Industry
Secretary, to launch an independent investigation.

The statement in full from the AIDB reads:

‘The AIDB has decided to investigate the conduct of Deloitte & Touche LLP
as auditors and advisers to the MG Rover Group. Initially, the investigation
will focus on the audits of the 2003 accounts of MG Rover Group Limited and its
ultimate parent company, Phoenix Venture Holdings Limited and certain non-audit
services provided by Deloitte & Touche to the Group.

‘This decision was taken following consultation with the ICAEW (the
professional body of which Deloitte & Touche is a member firm), which has
agreed that the matter should be investigated by the AIDB.’

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

3d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

1w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

1m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter