The Financial Conduct Authority (FCA) is investigating IT services provider Redcentric in the latest episode of its accounting saga.
Redcentric commissioned a forensic review of its finances last November after finding that some of its accounts had been misstated in financial reports.
The London Stock Exchange-listed firm then admitted its net assets and profits after tax had been overstated by £20.8m.
Redcentric has now announced that it is the subject of an FCA investigation, after the conclusion of the independent review its board commissioned.
Redcentric said in a statement: "The FCA has notified Redcentric that it has commenced an investigation following the historic overstatement of net assets and profits as described in the company's announcements on 7 November 2016; 13 and 23 December 2016; and following the completion of an independent forensic review commissioned by the board of Redcentric.
"Redcentric will co-operate fully with the FCA and other relevant authorities concerning this matter. A further announcement will be made in due course if appropriate."
The announcement comes three weeks after the Financial Reporting Council announced it would be investigating PwC for its auditing of Redcentric's accounts.
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