EY audit of NMC Health under investigation The U.K. Financial Reporting Council (FRC) announced Monday it has opened an investigation into Ernst and Young’s audit of the 2018 financial statements of NMC Health, a healthcare provider based in the United Arab Emirates that’s currently under investigation for accounting fraud. The arrangements were not reflected on the company’s balance sheet nor reported in the company’s financial statements for the financial year ended Dec. 31, 2018. Emily Horton. Alvarez & Marsal, administrators of NMC Health are gearing up to sue EY — the former auditor of the former FTSE 100 company. EY said in a statement: “We can confirm that EY has been notified of the FRC’s intention to conduct an investigation into the audit of NMC Health plc for the year ended 31 December 2018. “We will be fully co-operating with the FRC during their inquiries. Abroad, EY has been fighting multiple court cases for its involvement in international audit scandals with a Dubai gold company and the now-insolvent Wirecard. EY confirmed it had received a letter of claim from NMC Health’s administrators. EY said it has been notified of the FRC’s intention to conduct an investigation into the audit of NMC Health plc. Information about your device and internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps. "We will be fully cooperating with the FRC during their enquiries. Britain's accounting regulator said it has opened an investigation into EY's audit of NMC Health, the troubled hospital operator that was placed into administration in April. NMC’s existing board of directors currently has no decision-making powers, which “transfer to the administrators, who are responsible for the day-to-day running of the company,” NMC Health said. The accounting watchdog has launched an investigation into EY over its audit of NMC Health, the private hospitals operator now in administration amid allegations of fraud.The Financial Reporting The Financial Reporting Council (FRC) said on Monday it had opened an investigation into EY’s 2018 audit of NMC Health. Big Four accounting firm EY risks being sucked into the escalating crisis at NMC Health after one of its former partners resigned from the private hospital company’s board. EY probed over NMC Health audit ‘Big Four’ auditor EY is being investigated over its handling of accounts for former FTSE 100 hospital operator NMC Health. “We will be fully co-operating with the FRC during their inquiries. EY probed over NMC Health audit ‘Big Four’ auditor EY is being investigated over its handling of accounts for former FTSE 100 hospital operator NMC Health. On April 9, after failing to reach an agreement with creditors, NMC Health announced the appointment of Alvarez & Marsal as administrators. The investigation by the FRC’s Enforcement Division began April 15 and concerns the financial statements of NMC Health for the year ended Dec. 31, 2018. Further reading: Jaclyn Jaeger is an editor with Compliance Week and has written on a wide variety of topics, including ethics and compliance, risk management, legal, enforcement, technology, and more. EY said it has been notified of the FRC’s intention to conduct an investigation into the audit of NMC Health plc. Investigation launched into EY audit of NMC Health The troubled hospital firm asked to be delisted from the London Stock Exchange last week. The UK’s financial watchdog has launched a formal investigation into the audit work produced by Ernst & Young for the troubled medical-care group NMC Health. 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