The matter of 'accounting irregularities' is now being looked into by the UK audit regulator, it has been confirmed in a letter to the House of Commons business select committee.
How Man City fans have reacted to the club's guilty verdict!
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It is the latest development running in the background behind Manchester City's strong showings on the football pitch, as Enzo Maresca's side continue to lead the Premier League table by a three-point margin with seven wins from a possible seven.
City have managed to emerge from a troublesome international break with a 0-3 win over Liverpool and a 3-2 home win over Ipswich Town, weeks after the club were found guilty by an independent commission of all charges relating to breaches of the Premier League's financial regulations between the 2009/10 and 2017/18 seasons.
Those findings also included the notion that Manchester City had artificially inflated their financial position by more than £900 million, with club officials now in the process of appealing the verdict and defending their 'irrefutable evidence'.
The same independent commission also found that City had given a "misleading impression" of the scheme used to disguise the origin of shareholder funds to its auditors, who were "unaware" of the scheme.
However, as part of the aforementioned appeal, officials and legal professionals at Manchester City are arguing that the findings contain "material errors, of law, principle and fact and is unsafe".
FRC confirms enquiries into Man City accounting irregularities
Now, as reported by BBC News, the UK audit regulator - the Financial Reporting Council (FRC) - has confirmed in a letter to the House of Commons business select committee that it is leading inquiries into accounting irregularities at Manchester City.
The FRC have stated they took over "regulatory consideration" of the case involving City from the Institute of Chartered Accountants in England and Wales on 30 September, although no formal investigation has yet started.
What can the FRC do with Man City?
The FRC most notably has greater resources and powers to apply sanctions if finds evidence of violations, routinely overseeing accounting standards at institutions such as listed public companies, but not football clubs.
The report explains that the FRC can look into the conduct of BDO - Manchester City's auditors - to ask whether the audit was in line with the rules, and also apply sanctions to individuals such as directors or employees of the Premier League club, if they are members of professional accountancy bodies.
BDO is the UK's fifth-biggest accounting firm advising more Premier League and Championship clubs than any other firm, but have so far declined to comment to BBC News on the matter.
What is the current mood within Man City?
Aside from the public wording coming from Enzo Maresca and his Manchester City players - which continues to be one of positivity - recent reports have indicated a 'bullish' feeling with regards to the club's appeal against the findings of the Premier League.
That appeal, according to a recent report from The Telegraph, is based on 'contemporaneous bank statements, government records and receipts they believe confirm the Abu Dhabi government as the source of funds for deals'.
There is also claimed to be 'more recent evidence from the Abu Dhabi government' which is said to reaffirm the accuracy of original records, while City's legal team are also set to point to 'fundamental inconsistencies' in the initial findings published by the Premier League.
For now, an appeal hearing date has yet to be set while a panel is appointed to scrutinise the evidence.