Thomas Cook financial auditing probe extended

The Financial Reporting Council (FRC) has announced it will extend its probe days after the Official Receiver revealed Cook collapsed owing creditors nearly £9 billion.

In October, the FRC announced an investigation into EY’s audit of Cook’s financial statements for the year ending 30 September 2018.

However, on Thursday (19 December), the FRC confirmed its investigation would now extend to Cook’s financial statements for the year ending 30 September 2017 as well.

“The FRC’s investigations are being conducted by the FRC’s enforcement division under the audit enforcement procedure,” said the council. “The FRC will continue to keep the scope of the investigations under close review.”

Once the investigation is concluded, the FRC’s executive counsel will decide whether to issue a decision notice which could then trigger a tribunal, and potentially sanctions.