UEFA has confirmed that it has opened an investigation into Liverpool over a possible breach of Financial Fair Play rules.
The Merseyside outfit's accounts will be looked into following their return to the Champions League after finishing second in the Premier League last season.
Another six European clubs, including Monaco, Inter Milan and Roma, are also under investigation as the European governing body continues to clamp down on extravagant spending.
A statement from UEFA said: "The club financial control body has opened formal investigations into seven clubs as they disclosed a break-even deficit on the basis of their financial reporting periods ending in 2012 and 2013."
UEFA rules state that clubs cannot record losses of more than £35.4m over two seasons, but Liverpool posted losses of £49.8m in 2012-13 and £41m in 2011-12.
Recent reports claimed that £7m worth of Champions League prize money will be withheld from Liverpool while the probe is ongoing.
The Reds' first game back in the elite European tournament following a five-year absence resulted in a 2-1 victory over Ludogorets Razgrad.