An investigation into potential fraud at the car dealership group Lookers has discovered a £19 million accounting black hole.
The company said yesterday that an investigation by Grant Thornton, the accountancy firm, had found issues with its balance sheet going back a number of years, including fraudulent expenses claims.
Lookers said that £4 million related to previously reported issues with one of the group’s operating divisions, including “certain misrepresented and overstated debtor balances in respect of supplier bonuses receivable together with a number of fraudulent expense claims”.
The remaining £15 million is linked to “the incorrect or inconsistent application of policies, processes and accounting standards”. Approximately half of the £19 million relates to its results for the last financial year. The company also said Grant