The UK Financial Reporting Council (FRC) has initiated an investigation into Deloitte over its audits of mining group Glencore.
In a statement, the FRC said it has “commenced an investigation in relation to the statutory audits conducted by Deloitte of the financial statements of Glencore and Glencore Energy UK for the financial years ended 31 December 2013 to 31 December 2020”. The investigation adds to the scrutiny Deloitte faces over its auditing practices. Glencore has faced legal challenges, including pleading guilty in 2022 to corruption and market manipulation cases in the US and UK. The mining company admitted to paying bribes to secure business in eight countries, ranging from Brazil to South Sudan. These legal issues have prompted a closer examination of Deloitte’s audit procedures during the relevant period. According to the regulator, its “investigation will include whether Deloitte gave sufficient consideration to the risk of non-compliance with laws and regulations” and it will be conducted by its Enforcement Division under the Audit Enforcement Procedure. Deloitte, as reported by the Financial Times, said it was “committed to the highest standards of audit quality” and would “fully co-operate” with the investigation. The FRC’s investigation into Deloitte is part of a broader examination of Big Four accountancy firms. In June 2024, the FRC launched a probe into Deloitte and Azets for their audit work with Stenn, a collapsed invoice-financing firm. Stenn went into administration in December 2024 due to lender concerns about suspicious transactions. The investigation covers audits from 2017 to 2023, with Deloitte having taken over from Azets for the 2023 financial year. Deloitte assumed auditing responsibilities from Azets, a top ten UK accounting firm, after Azets took over following EY’s resignation in 2018. EY had raised concerns about certain related party transactions and management’s explanations, as detailed in a public letter. The FRC has the authority to impose fines and other penalties for non-compliance with auditing standards.Deloitte under investigation by UK FRC over Glencore audits
The investigation adds to the scrutiny Deloitte faces over its auditing practices.
Shivam Mishra July 24 2025
