Deloitte is being investigated by the UK chartered accountants professional body, for its audits of Essar Oil UK, which owns the Stanlow oil refinery, the second largest in the UK.
The investigation by the Institute of Chartered Accountants in England and Wales (ICAEW) began in August after the body received a complaint, according to the Financial Times, which first reported the news.
The Big Four firm stopping providing auditing services for Essar Oil UK in October last year, blaming governance concerns in relation to the oil company’s audit strategy.
But Deloitte had already given the company’s accounts, spanning 18 months, the green light just three months earlier with no such concerns mentioned.
The ICAEW investigation has focussed on whether Deloitte should have flagged its concerns earlier.
City A.M. understands that although Deloitte sent a formal letter of resignation to Essar Oil in October 2020, there was a filing issue with the documents at Companies House which is still being investigated by the ICAEW.
Deloitte declined to comment on the news. The ICAEW have been contacted for comment.