The Financial Reporting Council (FRC) of the United Kingdom has launched an investigation into Deloitte's audits of Go-Ahead Group, a passenger transport company.
The investigation, which was announced on Tuesday, will focus on the audits of Go-financial Ahead's statements for the fiscal years 2016 to 21. The FRC's Enforcement Division will conduct the investigation, which will not involve any individuals, according to the regulator.
"We will fully cooperate with the FRC's investigation," a Deloitte UK spokesperson said in a statement. "Deloitte is committed to the highest standards of audit quality."
The United Kingdom Department for Transport issued Go-Ahead a penalty notice worth 23.5 million pounds ($30.7 million) last month. After it was discovered that Go-Ahead had improperly retained £25 million (US $32.6 million) in taxpayer money, the company was stripped of control of its Southeastern rail contract.
In December, Go-Ahead admitted to "serious errors" in its rail operations and apologized to the Department of Transportation. The company was expecting a fine from the agency of £30 million (US $39 million).
Go-Ahead has reported itself to the Serious Fraud Office, but no investigation has been announced.
By fLEXI tEAM