The accountancy watchdog has launched a probe into MHA over an audit of an unnamed company financial statement.
MHA, formally known as MacIntyre Hudson until its rebrand in 2019 is the independent UK arm of the global consulting firm of Baker Tilly International.
The Financial Reporting Council (FRC) announced on Thursday that it had commenced an investigation in relation to the audit conducted by the firm over the financial statements of a public interest entity for the year ended 31 December 2022.
The regulator said the decision was made at a meeting of the FRC’s conduct committee on 19 March 2024.
It noted that the investigation will be conducted by the its enforcement division under the audit enforcement procedure.
Commenting on the news, a spokesperson for the firm said: “MHA is assisting the FRC with the investigation announced today. We cannot comment any further until that work is complete. MHA remain committed as always to the highest levels of audit quality.”
Baker Tilly International reported double-digit growth in revenue over 2023 as global turnover jump 11 per cent to $5.2bn. While MHA reported a fee income of £142m for year end 31 March 2023, up from £124m in 2022.
Earlier this week, the FRC hit accountancy firm Crowe UK with a financial sanction of £144,000 over its audit of London-listed Aseana Properties. Back in March one of the Big Four firms, KPMG, was hit with a £1.4m fine over its audit of advertising agency M&C Saatchi. While one of its partners, Adrian Wilcox, was also issued a financial sanction of £48,750.
The regulator has also been opening investigations this year including a probe into the conduct of “a member” in relations to the bankrupted Thurrock Council’s accounts.
This comes after the regulator promised to become more “forceful” after it was heavily criticised for the slow pace of its investigations.