Embattled outsourcing giant Mitie is calling in auditors to comb through its figures in a move that could slash its profits.
New boss Phil Bentley is believed to have sanctioned an external review ahead of a shake-up of the rules on how companies recognise revenues in their books.
The FTSE 250 company has been criticised by analysts for aggressive accounting, particularly how it books revenues and profits on long-term contracts.
Last year it parted company with long-serving chief executive Baroness (Ruby) McGregor-Smith and issued two profit warnings in as many months.
The review is likely to focus on issues such as its growing book of long-term receivables. This bucket of assets, which grew from zero in 2010 to £86m last April, reflects income and costs Mitie has booked as revenue but has not yet been paid.
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The new accounting standard IFRS 15, which comes into force next January, will be tougher on when businesses can book revenues in this way.
Mitie has been audited by Deloitte since it floated in 1987. Bentley, formerly the boss of Cable & Wireless Communications, is expected to appoint a different firm to handle the review.
The shares have staged a slight recovery since November, when Mitie admitted defeat on an ill-timed expansion into residential care, but are still almost a third below their level a year ago. They closed last week at 213.3p, valuing the company at £767m.