Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

SIG's auditors face financial watchdog probe

The Financial Reporting Council (FRC) is investigating Deloitte’s auditing of SIG’s accounts for 2015 and 2016.

In February SIG announced its profit had been overstated by around £6.6m over the two years in question.

The FRC, which has delegated the investigation to the Institute of Chartered Accountants in England and Wales (ICAEW), will focus on Deloitte’s auditing of cash and supplier rebates in the company.

A spokeswoman for Deloitte said: “We will co-operate fully with this investigation.

“Quality is integral to our audit work and we are committed to continued improvement in audit quality through investments we’ve been making and programmes we have in place.”

Allegations of false reporting in SIG’s accounts came to light when a whistle-blower made claims about the company’s accounting practices.

This prompted the firm’s auditor Deloitte to carry out a “forensic review” of the company’s accounts with the help of KPMG.

The review found evidence of intentional overstatement in the firm’s accounts.

Last week the FRC slammed the auditing quality of the Big Four accounting firms and singled out KPMG for particular criticism.

KPMG is currently being investigated by the FRC for its auditing of Carillion’s accounts between 2014 and 2017.

SIG declined to comment on the investigation into Deloitte.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.