Deloitte to face FRC investigation over Joules audit

The Financial Reporting Council (FRC) has announced an investigation into the audit of fashion retailer Joules prior to its bankruptcy last year.

The FRC is specifically looking into Deloitte's audit of the retailer's accounts for the year up to the end of March 2021.

The watchdog said that the decision to scrutinise the auditing was made at a meeting of the FRC’s Conduct Committee on 20 March, and that the investigation will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure.

A spokesperson for Deloitte said the company will “co-operate fully with the Financial Reporting Council’s investigation” and remains “committed to the highest standards of audit quality.”
The FRC fined Deloitte £900,000 in November 2022 over its audits of materials supplier SIG after it admitted breaches over its work on the company's financial statements.

Next acquired Joules in a £41 million deal which saved over 1,400 jobs. The company said that it plans to relaunch the brand through its Total platform later this year, but last month announced a fresh consultation on job cuts leaving these ambitions up in the air.

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