Sports Direct has now formally announced that after the publication of its annual report and accounts on 13 August 2019, it received a notice from Grant Thornton that it would not be seeking reappointment as the company’s auditor. The company’s AGM takes place on 11 September 201, and Grant Thornton will cease to hold office as auditors from that date.
Grant Thornton said it took the decision following a review of its client portfolio.
However, later the same day a joint statement was released: “As referred to in the Chief Executive’s Report and Business Review in SD’s Annual Report and Accounts for the period ended 28 April 2019, SD has a longer term aim of looking to engage a Big 4 auditor in the future. In line with the audit profession as a whole reviewing their client portfolios for, among other reasons, audit profitability, during a period of increased regulatory scrutiny, GT’s review of its client portfolio alongside SD’s future intentions on engagement of a Big 4 auditor has led to a decision by GT to not seek reappointment as SD’s auditor.”
The board of SD went on to say it was ‘comfortable’ with SD’s accounts for the period ended 28 April 2019 and believes a fully robust audit was carried out of SD’s financial statements.