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November 22, 2018

UK FRC investigates Patisserie Valerie financial statement audits

UK regulator Financial Reporting Council (FRC) has started an investigation into the audits of British cake restaurant chain Patisserie Valerie.

UK regulator Financial Reporting Council (FRC) has started an investigation into the audits of British cake restaurant chain Patisserie Valerie.

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The investigation is being carried out under the Audit Enforcement Procedure to promote transparency and integrity in the business.

The audit was conducted by Accountancy firm Grant Thornton UK for the years ended 30 September 2015 to 2017.

Last month, the company’s directors confirmed that the group has a net debt of approximately £9.8m, which was spent using overdraft facilities with Barclays and HSBC.

“An FRC spokesman noted that the organisation could spend up to two years to complete the investigation.”

Patisserie Valerie’s finance director was arrested after the company announced the significant, and potentially fraudulent, accounting irregularities of more than £20m.

Under the investigation, FRC will focus on setting auditing and ethical standards as well as monitoring and enforcing audit quality.

The independent body is also investigating the ‘preparation and approval’ of financial statements and other financial information by the former chief financial officer Christopher Marsh.

An FRC spokesman noted that the organisation could spend up to two years to complete the investigation, according to The Guardian.

A Grant Thornton spokesman was quoted by the news website as saying: “I can confirm we have received a letter from the Financial Reporting Council informing us of its decision to commence an investigation, and we will, of course, fully cooperate in this matter.”

Following the completion of the investigation, FRC will decide on filing a case to a tribunal against Grant Thornton and Marsh.

Earlier this month, Patisserie Valerie CEO Paul May resigned from his role effective immediately.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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