Deloitte under investigation for handling of Joules audit

The Financial Reporting Council (FRC) in the UK has begun an investigation into the audit conducted by Deloitte of the consolidated financial statements of Joules Group for the year ended May 30, 2021.

The investigation, which will be conducted by the FRC’s Enforcement Division, was decided upon during a meeting of the organisation’s Conduct Committee in late March 2023.

Deloitte handled the group’s auditing duties during Joules’ collapse last year, with joint administrators from Interpath Limited also appointed to the company.

The British heritage brand was later rescued from administration in December 2022 by Next for 34 million pounds, with the UK retailer owning 74 percent of the company while the remaining 26 percent is in the hands of founder Tom Joule.

Next has since said it is planning to relaunch Joules later this year, bringing the brand under an expanded version of its Total Platform offering, which will see Next contribute everything from distribution and warehousing services to financial systems and product planning arrangements.