The accountancy watchdog has launched an investigation into MHA, the UK arm of Baker Tilly, for its audit of a construction company in administration.
The Financial Reporting Council (FRC) revealed Tuesday morning that it has commenced a probe into MacIntyre Hudson of ISG’s audit for the year ended 31 December 2022.
MHA, formally known as MacIntyre Hudson until its re-brand in 2019, is the independent UK and Ireland arm of the global consulting firm of Baker Tilly International.
It added this decision was made at a meeting of its conduct committee on 21 January.
ISG collapsed into administration last September with reportedly £1.1bn worth of debt, with the administrators at EY noting it expected to recoup just £35m for creditors.
The construction company had over 2,000 people employed before its administration.
Commenting on the probe, a spokesperson for MHA said it “is committed to audit quality and we will be co-operating fully with the FRC as part of this investigation”.
Back in August 2024, MHA was censured by the Financial Conduct Authority (FCA) following an investigation for “failing” to prepare client assets reports to the “required standard”.
Back in May, the FRC opened another investigation over an audit of an unnamed company’s financial statement.
The news this morning follows revelations on Sunday that MHA was set to launch an IPO on London’s junior stock market AIM on Monday which targeted a £350m valuation and included a plan to bring in £6m from British retail investors.
MHA was aiming to raise up to £125m from the float in the coming weeks, according to documents seen by City AM.