Grant Thornton subject of Financial Reporting Council investigation over its audit of Globo’s accounts
The Financial Reporting Council (FRC) has today revealed that it is launching an investigation into accountancy firm Grant Thornton regarding its audit of the accounts of Globo for the years ended December 2013 and 2014.
The technology company announced in October that its former chief executive had alerted the board to misrepresentations of the company's financial situation. In the same month, Globo also revealed that it was under investigation by the Financial Conduct Authority (FCA).
In November, three employees from FTI Consulting were appointed as joint administrators by court order.
A statement from Grant Thornton stated that the audit firm had acknowledged the FRC's announcement of its investigation launch and continued: "Maintaining the highest level of quality is at the heart of Grant Thornton's agenda. As a member of the accountancy profession, we also have the benefit of regulators who regularly review our audits and we shall continue to work actively with the FRC."
A spokesman for the administrators said that they "are aware of the FRC investigation and will liaise with them accordingly."
The FRC's announcement comes less than a month after the US member firm of Grant Thornton agreed to pay a $3m (£2m) penalty to the U.S. Securities and Exchange Commission, after the firm and two of its partners were said to have ignored warning signs while auditing two publicly listed companies.
The auditors also had to forfeit $1.5m of fee income.