The accounting watchdog has confirmed that it will investigate the auditor’s work for the parent firm of Patisserie Valerie as it looms on a pretty unstoppable collapse.
The examination by the Financial Reporting Council (FRC) will focus on three of the high street chain’s financial years ending 30 September 2015 to 2017.
The FRC’s inquiry follows criticism of auditors – and regulators such as the FRC – after the collapse of Carillion in January this year.
The FRC have added that it would also look in to the “preparation and approval” of Patisserie Holdings’ financial statements and other information by the precious CFO Chris Marsh.
Chris Marsh was suspended by the company in October and then resigned after Patisserie Holdings alerted the market to a multi-million pound black hole in its finances.
Patisserie Valerie has over 200 shops and employs nearly 2,500 staff
Mr Marsh was arrested as part of a fraud inquiry but later released.
The company’s chairman Luke Johnson told investors this month that without £20m in emergency loans that he was willing to put in, Patisserie Holdings would have been bankrupt in three hours.
Just a week ago, its chief executive of 12 years Paul May quit to be immediately replaced by a turnaround specialist.