Thomas Cook’s Audit and Tax Controversy Under Scrutiny

  • FRC to investigate Thomas Cook’s auditor EY
  • Investigation will look into audit of financial statements for year ended 30 September 2018
  • Insolvency experts from KPMG appointed as special managers to Thomas Cook’s retail and aircraft maintenance divisions
  • Thomas Cook’s high street shops denied £2.49m tax cut due to government policy

The Financial Reporting Council (FRC) is investigating Thomas Cook’s auditor EY following the company’s collapse, which left thousands of staff without jobs and stranded tourists. Insolvency experts from KPMG have been appointed as special managers to Thomas Cook’s retail and aircraft maintenance divisions. It has emerged that the company’s high street shops were denied a £2.49m tax cut due to government policy.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the investigation of Thomas Cook’s auditor EY by the Financial Reporting Council (FRC), the appointment of KPMG as special managers for Thomas Cook’s retail and aircraft maintenance divisions, and the impact of government policy on the company’s tax situation. The information is relevant to the main topic and does not include digressions or personal opinions presented as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about the investigation of Thomas Cook’s auditor EY by the Financial Reporting Council and the impact of tax policies on the company. It also mentions the appointment of special managers from KPMG to handle the retail and aircraft maintenance divisions. The article stays on topic and supports its claims with evidence, making it a relatively informative piece.
Financial Relevance: Yes
Financial Markets Impacted: Thomas Cook, EY (Ernst & Young), KPMG
Financial Rating Justification: The article discusses the investigation of Thomas Cook’s auditor EY by the Financial Reporting Council and the impact on Thomas Cook’s retail shops due to a denied tax cut. This affects financial markets through the companies involved and their stock prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk