The Financial Reporting Council (FRC) has announced it has launched an investigation into the auditor of crisis-hit cafe chain Patisserie Valerie.
The FRC said it would be looking into the audit by accounting firm Grant Thornton UK regarding the financial statements of Patisserie Holdings for the years ended 30 September 2015, 2016 and 2017. The investigation will be conducted under the Audit Enforcement Procedure.
The FRC has also commenced an investigation under the Accountancy Scheme into the preparation and approval of Patisserie Holdings’ financial statements and other financial information by the former chief financial officer, Chris Marsh, a member of the Institute of Chartered Accountants in England and Wales (ICAEW).
In October, Chris Marsh was suspended and subsequently resigned from his role as the chief financial officer, after “accounting irregularities” were discovered. He was arrested by the Serious Fraud Office (SFO) on 10 October then released on bail. A criminal investigation has been opened and is currently underway.