Deloitte’s audit of Mitie put under microscope

The accountancy watchdog on Monday launched a probe into the auditing of cleaning company Mitie by big four accountant Deloitte.

The Financial Reporting Council said it will investigate whether Deloitte breached any rules in the audit of Mitie annual accounts in 2015 and 2016 under its “audit enforcement procedure”, which can involve disciplinary action against auditors and actuaries.

Mitie took a big writedown on accounts this year after admitting some of its accounting techniques have been “less conservative” than its outsourcing rivals in the past year.

A Deloitte spokesperson said: “Audit quality is of critical importance to our firm and we are committed to maintaining the highest professional standards.

“We take this investigation very seriously and will cooperate fully with the Financial Reporting Council.”

Former chief executive Ruby McGregor-Smith stepped down after performance at the group came under fire.

She was replaced by former British Gas managing director Phil Bentley (pictured) last October.

Mitie declined to comment on the FRC investigation.