Thomas Cook Probe Opened by Audit Watchdog After Collapse (1)

The U.K.’s accounting watchdog opened an investigation on Oct. 1 into Ernst & Young’s audit of Thomas Cook Group Plc’s financial statements after the 178-year-old tour operator collapsed.

The Financial Reporting Council began the probe amid a growing political outcry over the failure last month, which cost thousands of jobs and left tourists stranded across Europe. The Big Four accounting firms have come under intense scrutiny in the U.K. following the collapse of outsourcing contractor Carillion PLC, bakery chain Patisserie Holdings Plc and other companies.

EY has been notified of the of the FRC’s intention to investigate ...