Danny McCance 14 Jun 2017 10:23am

Baker Tilly loses appeal against FRC complaint

The mid-tier accountancy firm filed an appeal for judicial review in the Court of Appeal challenging a Financial Reporting Council (FRC) disciplinary order

The firm appealed the complaint by the FRC’s executive counsel on the grounds of poor interpretation of a paragraph in the guidance issued by the FRC.

The original complaint regarded the adequacy of the audit work performed by the firm as auditor of Tanfield Group, particularly during the period where Tanfield acquired Snorkel.

Doubts were raised over the amount of goodwill during this transaction, and upon investigation the FRC delivered its formal complaint on the grounds that the firms misconduct in regards to competency could be categorised as a "non-trivial failure".

Baker Tilly appealed, claiming that the term "non-trivial failure" did not match the authorities definition of misconduct in its guidance.

The court dismissed the appeal.

A spokesman for Baker Tilly UK said, "Baker Tilly is grateful to the Court of Appeal for its careful scrutiny of the FRC executive counsel’s application of the guidance on the delivery of Formal Complaints under the Accountancy Scheme, and its recognition that the relevant section of the Guidance merits re-drafting by the FRC."

Taylor Wessing instructed Baker Tilly during the appeal.