FRC kicks off Next Digital Limited probe
The investigation was initiated amidst questions on Next Digital’s financial statements and audits.
Independent regulator, Financial Reporting Council (FRC), initiated the investigation on Next Digital Limited (NDL) amidst questions on its financial affairs.
The regulator announced it will conduct an inquiry on the financial statements of NDL for the 2019 and 2020 annual accounts and the 2021 interim accounts.
It will also investigate the audit of the 2019 Annual Accounts by Deloitte Touche Tohmatsu and the 2020 Annual Accounts by CCTH CPA Limited.
“The FRC identified questions about the financial statements and audits of Next Digital through proactive monitoring of market developments, a referral by another regulator and a complaint from a member of the public,” the regulator said in a statement.
The investigation on Deloitte’s and CCTH’s audit seeks to address the audit work on NDL’s impairment assessments and the appropriateness of the resulting impairment provisions.
“These assessments and the resulting implications for the financial statements are especially important when an entity and the businesses comprising its cash-generating units are loss-making and it has net current liabilities,” the FRC noted, adding this covers information that may be relevant in investment decision making.
This followed the government’s announcement to also investigate NDL over alleged fraudulent financial affairs.
Read also: Gov’t investigates Next Digital Limited over alleged fraud affairs