The UK accounting watchdog, the Accountancy Investigation and Discipline Board (AIDB), said on Wednesday it had decided to investigate accounting firm Deloitte over its role as auditor and adviser to carmaker MG Rover, which filed for bankruptcy in April, Reuters reported.
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Rover collapsed under debts of £1.4 billion, causing the loss of 5,000 jobs after the carmaker was forced to close its production plant at Longbridge, the news agency noted.
The investigation by AIDB into Deloitte is separate to an existing enquiry launched in May by the Department of Trade and Industry into the causes of MG Rover’s collapse, the report said.
Deloitte reportedly denied any wrongdoing.
“We will fully co-operate with the investigation; we are confident that we will demonstrate that our work was carried out to the highest professional standards,” it said in a statement cited by Reuters.
The report said the investigation would focus initially on the audits of the 2003 accounts of MG Rover Group Limited and its ultimate parent company, Phoenix Venture Holdings Limited, as well as certain non-audit services provided by Deloitte & Touche to the Group.
