EY is being investigated by the FRC over its audit of Computer 2000 Distribution Limited (C2000) after the accounting watchdog extended the scope of its investigation to include the conduct of the firm.
The FRC said it extended its investigation to include the preparation and approval of the financial information of C2000 for the years ended 31 January 2009 to 31 January 2013, and the conduct and audit work carried out by EY over the period.
In May, the FRC launched an investigation into C2000 following an independent investigation into its accounting practices across Europe carried out by parent Tech Data earlier in the year.
The probe came more than a year after Tech Data first announced it had uncovered “accounting improprieties” relating to its UK business, leading it to wipe $25m (£15m) off its previously reported net profits.
EY declined to comment.