The U.K.'s Accountancy Investigation and Discipline Board said that it is looking into the audit and advisor work that Deloitte performed for bankrupted car manufacturer MG Rover.
In April, MG Rover filed for bankruptcy under a debt of more than $2.5 billion, forcing the company to close its production plant and more than 5,000 workers to lose their jobs. The investigation by the AIDB, the country's top accounting regulator, is separate from an ongoing review that the Department of Trade and Industry began in May looking into the causes behind MG Rover's collapse.
Deloitte denied any wrongdoing in a statement. "We will fully cooperate with the investigation; we are confident that we will demonstrate that our work was carried out to the highest professional standards," the company said.The investigation will initially review audits of the 2003 accounts of MG Rover Group and its parent company, Phoenix Venture Holdings, as well as certain non-audit services provided by Deloitte & Touche to the group, the AIDB said. The group said that it reached the decision to investigate Deloitte's conduct after consulting with the Institute of Chartered Accountants in England and Wales, a professional organization of which Deloitte is a member.
