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The Financial Reporting Council (FRC) has started an investigation into EY’s audit of the financial statements of Stirling Water Seafield Finance plc for the year ended 31 December 2019.
The firm has been made aware of the investigation and will reportedly “cooperate fully” with the FRC.
The investigation will be carried out by the council’s enforcement division under the audit enforcement procedure.
At this time, the UK accounting regulator has not disclosed the focus of its enquiry.
However, the council has noted that the investigation does not relate to any persons other than the statutory auditors of the Veolia-owned company, as it would “not be fair” to include any other persons or entities.
According to Veolia, “the quality of the 2019 audit performed by EY was not in any way compromised and this audit has not been invalidated”.
The announcement comes as the FRC made the decision at a meeting of the conduct committee on 13 December 2022.
This is among the latest of EY’s audits that has come under scrutiny by the FRC, as the firm’s audits of NMC Health, Thomas Cook and London Capital and Finance are already the subject of the council’s investigations.
EY has been contacted for a comment.
