The U.K. Financial Reporting Council (FRC) on Thursday announced it opened an investigation into accounting firm Mazars regarding its audit of financial statements at Studio Retail Group.
The probe will focus on the Mazars audit for the period ended March 26, 2021, and is only related to the firm at this time, the FRC acknowledged in a press release. The decision to launch an investigation was made at a September meeting of the regulator’s conduct committee.
“Mazars is cooperating fully with the regulator and, respecting client confidentiality and due process, will provide no further comment during the course of the investigation,” the firm said in an emailed statement.
The FRC announced no further details on its probe.
Studio Retail Group, previously known as Findel, is a British home shopping company. Its shares dropped significantly in January after it warned of less-than-expected profits and an impending price hike.
The business entered administration in February after a funding bid at 25 million pounds (U.S. $28 million) failed, according to multiple reports, including The Times. Studio Retail Group was quickly bought out of administration by Frasers Group, which paid off £26.8 million (U.S. $30 million) to lenders.