FRC ends probe into Serco financial statements

21st Feb 2023 09:09

(Sharecast News) - The Financial Reporting Council (FRC) announced the closure of its investigation into Serco's financial statements for 2011 and 2012 on Tuesday.

It had probed the preparation and approval of the financial statements for Serco Geografix, Serco and Serco Group for the years ended 31 December 2011 and 31 December 2012 under the Accountancy Scheme.

The investigation began in June 2016, and the FRC had taken action over the 2011 and 2012 audits of Serco Geografix in July 2019.

At the time, the FRC fined Deloitte £6.5m, discounted for settlement to £4.23m, as well as charging £0.3m towards the costs of the investigation.

At the same time, it fined Deloitte's audit engagement partner Helen George £0.15m, discounted foe settlement to £97,500, with both parties being "severely reprimanded".

"Under the Accountancy Scheme, the FRC may investigate Accountancy Scheme members and member firms," the FRC said in its statement on Tuesday.

"No Serco Group companies were subjects of the FRC's investigation.

"The closure of the remaining aspect of the FRC's investigation follows the conclusion of the criminal proceedings brought by the Serious Fraud Office, and further consideration by the FRC."

At 0908 GMT, shares in Serco Group were down 0.2% at 152.6p.

Reporting by Josh White for Sharecast.com.