Share Prices & Company Research

Market News

12 Mar 2021 | 10:02

Regulator to probe Deloitte's audits of Lookers

(Sharecast News) - The UK accounting regulator has launched an investigation into Deloitte's audits of Lookers, the car dealership chain that suffered an accounting fraud. Lookers said in June 2020 an investigation had found £19m of profit overstatements covering several years. Grant Thornton carried out the investigation after Lookers discovered a £327,000 fraud carried out by one person over several years.

The fraud delayed Lookers' 2019 results and forced it to suspend its shares. In November the company said profits were overstated by £25.5m over a number of years.

The Financial Reporting Council said its enforcement division would investigate Deloitte's audits of Lookers for 2017 and 2018. The firm resigned as Lookers' auditor after the company's 2019 results.

Deloitte said: "We take this investigation seriously and are fully cooperating with the Financial Reporting Council. Audit quality is our priority and we are committed to maintaining the highest professional standards."

Lookers is one of a series of accounting scandals at UK companies at recent years including Carillion and BHS, both of which collapsed. The failures raised questions about the rigour of audits performed by the big four accountants and in 2020 they were told to split off their audit practices by 2024.

The Financial Conduct Authority closed an investigation into possible mis-selling of financial products by Lookers on 2 March. The regulator did not fine Lookers but it said it was not happy with "the historic culture, systems and controls of the group".

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 30th April 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.