AuditRegulators

Grant Thornton under scrutiny for Sports Direct audit

Grant Thornton is facing scrutiny from the Financial Reporting Council (FRC) its Sports Direct accounts.

According to The Times, the FRC is looking into the audit firm over concerns of how Sports Direct’s 29% stake in Debenhams was valued.

The regulator is concerned that the retailer’s stake should have been valued higher thus giving it more influence over the department store which was narrowly saved from collapse in April.

When the department store entered a pre-pack administration, all of its shareholders were wiped out. Sports Direct owner Mike Ashley made numerous bids for the department store in an effort to protect his stake, however the offers were ignored.

In 2016, Grant Thornton was probed by the FRC over its Sports Direct audit and the alleged non-disclosure of payments to a firm owned by Ashley’s brother.

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