29 Jan 2019
The Financial Reporting Council (FRC) has opened a new probe into Big Four accountancy firm KPMG regarding collapsed business Carillion.
British construction firm Carillion went into liquidation after stacking up huge debts and losing money on contracts.
Following the development, the regulator launched an investigation in January 2018 into KPMG’s audits of the firms (2014-2017).
Last week it announced that it has now launched a further investigation relating to aspects of the Carillion audit for the year-end 2016. It said it could not disclose the full details, however.
“The FRC continues to progress its original investigations in relation to the collapse of Carillion in conjunction with other regulators,” the FRC explained.
“A key area of focus has been the financial performance of Carillion’s major contracts in both the construction and services divisions, and whether Carillion management and its auditors ensured that this was appropriately reported in its financial statements.”
KPMG reportedly said it is reviewing ‘its response to the FRC’s quality review of Carillion’s 2016 audit’ and that it had self-reported concerns pertaining to documents provided to the FRC, according to Reuters.
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