Owl says: Good job we have internal auditors and an Audit and Governance Committee and a Scrutiny Committee …
“What is most perturbing is that the auditor being relied upon by investors [in Sports Direct – whose shares have tumbled] to navigate their way through the accounting miasma is Grant Thornton. It is jolly good that Grant Thornton is a challenger to the big four, but investors might feel more comfortable if the track record were more stellar.
Among its stunning successes were the audit of Patisserie Valerie, where tens of millions of pounds vanished, and Neil Woodford’s gated Equity Income fund.
Small wonder Grant Thornton has been put under special measures to raise audit quality by the enforcer, the Financial Reporting Council. Given the known unknowns, the 9 per cent drop in Sports Direct looks too kind. …”