Accountancy watchdog, the Financial Reporting Council (FRC), has closed its investigation into the preparation and approval of outsourcer MITIE PLC’s (LON:MTO) financial statements for the year to March 2016.
An investigation into accountant Deloitte’s audit of the group's numbers for that year and the previous year to March 2015 is still ongoing, the FRC added in a statement.
The FRC said: "After a detailed review of the evidence, the Executive Counsel has decided that the evidential test for bringing enforcement action is not met. Accordingly, the case has been closed.”
MITIE warned in September 2016 that its profits in that year would be materially below expectations due to pricing and cost pressures. The following year the company said it might have to restate the 2016 accounts due to material errors.
UK financial regulator the Financial Conduct Authority dropped its investigation into the circumstances behind the 2016 profit warning two years ago.
A report published yesterday by the FRC indicated that a third of all company audits by the largest seven accountancy firms last year filled to meet the regulator’s quality test.