The U.K. Financial Reporting Council (FRC) launched an investigation into Big Four audit firm EY’s work at Stirling Water Seafield Finance.

The probe, announced Jan. 13, is focused on EY’s audit of the financial statements of Stirling for the year ended December 2019. The investigation does not relate to any individuals at this time.

The FRC offered no further details on the specifics of its probe.

“We will be fully cooperating with the FRC during their enquiries,” said an EY UK spokesman in an emailed statement. “It would be inappropriate to comment further at this time.”

Stirling is a Scotland-based subsidiary of French resource management company Veolia. Its 2019 financial statement was the last with EY serving as its independent auditor after the firm resigned from the role in April 2021 following its “inadvertent breach” of the maximum engagement period allowed under U.K. law. EY’s tenure as auditor was supposed to cease the year ended December 2018.

Stirling’s 2020 financial statements were audited by MHA MacIntyre Hudson.

Kyle Brasseur is Editor in Chief of Compliance Week. His background includes expertise in user personalization with ESPN.com.View full Profile

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