“Grant Thornton announced an independent review and a 7 million pound revamp of its UK accounting operations on Saturday to improve standards after regulators opened an investigation into its audit of café chain Patisserie Valerie that came close to collapse last year.
The accounting firm said the measures were part of its response to recent “scrutiny of its audits of large listed companies”, and wider efforts to prepare the business to compete for audit work from Britain’s top 350 listed companies “should changes in the market present a more level playing field for competition”.
Britain’s accounting watchdog, the Financial Reporting Council, said in November it was investigating Grant Thornton’s audit of Patisserie Valerie for 2015-2017.
Dave Dunckley, chief executive of Grant Thornton in Britain, said the firm would work with clients and the regulator to go further.
“The independent review of our audit practice this autumn will be an important part of our continued efforts to improve,” Dunckley said in a statement.
Britain’s Competition and Markets Authority has proposed sweeping reforms of the UK audit market after questions were raised about accounting standards following the collapse of retailer BHS and construction company Carillion, which took place before Patisserie Valerie’s problems were came to light. …