The Financial Reporting Council (FRC) has revealed it has commenced an investigation in relation to the audit conducted by BDO of the consolidated financial statements of NMCN for the year ended 31 December 2019.
The decision was made following a meeting of the FRC’s conduct committee on 14 September 2021.
The investigation will be conducted by the FRC’s Enforcement Division under the audit enforcement procedure.
Construction specialist company NMCN entered administration on 4 October 2021 after it succumbed to £43m of losses in its 2020 accounts and experienced cash flow difficulties throughout 2021.
Subsequently, Helen Dale, Nigel Morrison and Jon Roden of Grant Thornton UK, were appointed as joint administrators of NMCN Plc and NMCN Sustainable Solutions Limited on 6 October 2021.
A BDO spokesperson said: “We are aware that the FRC has commenced an investigation in relation to the audit of the 2019 accounts of NMCN plc.
“We will obviously cooperate fully with the FRC during its enquiries and assist with any further information it needs. Now that the investigation has started, it would be inappropriate to comment any further.”