FRC extends Thomas Cook investigation

The Financial Reporting Council has announced it will be extending it’s investigation into the audit of Thomas Cook by EY following its collapse in September.

It said the “matters” being investigated by the FRC concerning EY’s audit of the financial statements of Thomas Cook will now include an investigation into EY’s audit of the group’s financial statements for the year ended 30 September 2017.

The FRC said its investigation is being conducted by its Enforcement Division under the Audit Enforcement Procedure, and added it will continue to keep the scope of the investigations “under close review”.

It comes after the FRC annoucned in October that it would be investigating Thomas Cook’s auditor EY, following its collapse the week prior which left 21,000 staff redundant and 15,000 British tourists stranded abroad.

All 600 of Thomas Cook’s retail shops closed at the time, after the company was denied a government bailout of £250m.