It said the report, which was received earlier this month, highlighted several areas where financial control will need “strengthening”.
The report also highlighted that there were a number of fraudulent expense claims within one of the group’s operating divisions.
Lookers said it has started to implement remedial measures to address the report and is investing into its financial systems.
An independent board has also been established to ensure the proper implementation of recommendations from the report.
The group said it believes it will still have been profitable before tax in 2019 despite the major adjustments.
Car dealerships have also been hit hard by the coronavirus outbreak, which forced sites to shut their doors in March and has resulted in a sharp fall in used car sales.
