FRC to probe EY over Thomas Cook collapse
The Financial Reporting Council (FRC) has launched an investigation into the collapse of travel firm Thomas Cook, which will examine EY’s audit of the company for the year ending September 30th, 2018. The FRC said the investigation would first look at whether EY had a case to answer, and if it did so then the two sides would convene at a tribunal where the accountancy firm – or individual accountants – would have a chance to defend any allegations against them. MP Rachel Reeves, chair of the Commons Business Select Committee, has vowed to grill both EY and PwC as part of its own investigation into Thomas Cook’s demise. EY took over as Thomas Cook’s auditor from PwC in 2017.