The UK’s Financial Reporting Council (FRC) said on Tuesday it has commenced an investigation into Deloitte’s auditing of Newcastle-headquartered international bus and rail giant Go-Ahead Group over six financial years ended between July 2016 and July 2021.
A spokesperson for Deloitte UK said the auditor will co-operate fully with the FRC investigation.
“Deloitte is committed to the highest standards of audit quality,” the spokesperson said in a statement.
Go-Ahead said last December that an independent review revealed “serious errors” by its London and Southeastern railway franchise, LSER, which led to it overcharging the country’s transport department in contracts over several years.
“The Financial Reporting Council (FRC) has commenced an investigation in relation to the audit conducted by Deloitte LLP of the financial statements of Go-Ahead Group plc for the years ended 3 July 2021, 27 June 2020, 29 June 2019, 30 June 2018, 1 July 2017, and 2 July 2016,” said the FRC.