The U.K. Financial Reporting Council on Wednesday announced the closure of its nearly three-year-long investigation into the financial statements of facility management firm Mitie Group for the year ended March 31, 2016.
The FRC opened the probe in November 2017, four months after initiating an investigation into Deloitte’s audit of Mitie for the years ended March 31, 2015, and March 31, 2016. The Deloitte investigation has focused on whether there were any breaches of relevant requirements in relation to the statutory audits of Mitie’s consolidated financial statements.
“After a detailed review of the evidence, the Executive Counsel has decided that the evidential test for bringing enforcement action is not met,” the FRC said Wednesday of the Mitie probe. The regulator’s look into the Deloitte audits remains ongoing.
Prior to the probe it just closed, the FRC conducted a Corporate Reporting Review of Mitie’s 2016 annual report and accounts. “These included issues relating to the impairment testing of the goodwill allocated to the Healthcare cash generating unit and a number of areas subsequently covered by the company’s Accounting Review, announced in its January 2017 trading update and initiated by its new Executive Management Team,” the FRC explained. The agency said its concerns were “satisfactorily addressed” following updates made by Mitie in its 2017 annual report.