An investigation by the UK’s Financial Reporting Council (FRC) has been opened into the audit conducted of French Connection by accountancy firm Mazars.
FRC announced Wednesday it has launched a probe into the consolidated financial statements of the British fashion retailer for the year ended January 31 2020.
The decision was made at a meeting of the FRC’s Conduct Committee on July 20 2021.
The investigation will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure.
Last week, French Connection announced it had been sold to a consortium of bidders including its second-largest shareholder, Apinder Singh Ghura, in a deal valuing the company at 29 million pounds.
In April, the retailer reported a 40.4 percent drop in group revenue to 71.5 million pounds in the year to January 31.
Its underlying loss for the period was 11.7 million pounds, compared to 2.9 million pounds the prior year.