Retail Giant Struggles to Find New Auditors Amid Tax Dispute
- Sports Direct searching for new auditor
- Grant Thornton resigns after £605m tax bill from Belgian authorities
- Deadline to contact business secretary passed without action
- Company running tender process for new auditor
- Big Four firms KPMG, Deloitte, PwC and EY ruled themselves out
Sports Direct is still searching for a new auditor after Grant Thornton resigned following a £605m tax bill from Belgian authorities. The retail brand’s AGM took place on September 11, and the company has not contacted business secretary Andrea Leadsom as per the 2006 Companies Act interpretation by shareholder advisory group PIRC. Yahoo Finance UK reports that Sports Direct is continuing its tender process for a new auditor, despite ‘Big Four’ firms KPMG, Deloitte, PwC and EY ruling themselves out. Founder Mike Ashley received 90% approval to continue as director after House of Fraser acquisition led to a 9% drop in profits last year.
Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about Sports Direct’s situation with its auditor resignation, the deadline set by PIRC, and the company’s ongoing search for a new auditor. It also mentions Mike Ashley’s approval as a director despite a drop in profits. However, it lacks some details on the tax bill from Belgian authorities and the reasons why ‘Big Four’ firms ruled themselves out.
Noise Level: 3
Noise Justification: The article provides relevant information about Sports Direct’s search for a new auditor and the potential involvement of the government. However, it lacks analysis or exploration of long-term trends or consequences, scientific rigor, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Sports Direct and potential impact on its share price and operations
Financial Rating Justification: The article discusses Sports Direct’s search for a new auditor, the resignation of Grant Thornton, and the potential involvement of the government due to financial issues with Belgian authorities. This has implications for the company’s financial situation and could affect its operations and share price.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
www.retailsector.co.uk