Tuesday 25 September 2018

Deloitte to be probed by watchdog over SIG audits

A forensic review at SIG revealed a string of accounting irregularities and misstated profits.

Deloitte is to be probed (PA)
Deloitte is to be probed (PA)

By Ravender Sembhy, Press Association City Editor

The accountancy watchdog has opened an investigation into Deloitte’s audit of building supplies firm SIG.

The Financial Reporting Council said on Thursday it will probe the accountancy giant’s audit of SIG’s financial statements for 2015 and 2016.

Earlier this year, a forensic review at SIG revealed a string of accounting irregularities and misstated profits, prompting the suspension and investigation of a number of employees.

It came after a whistleblower identified potential issues at its UK insulation and interiors business, SIG Distribution.

This resulted in the discovery of “historical overstatement of profit” for the financial year ending December 31 2016 as well as “prior years”.

The half-year statements to June 30 2017 were also affected.

In May, shareholders of the FTSE 250-listed firm then voted against appointing Deloitte as auditor.

The FRC’s investigation will be conducted under the Audit Enforcement Procedure and will focus on the audit of cash and supplier rebates.

It has delegated the investigation to the Institute of Chartered Accountants in England and Wales (ICAEW), which is Deloitte’s recognised supervisory body.

Shares in SIG were down 1.5%p on Thursday morning.

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