News
Danny McCance 16 May 2018 09:24am

FRC reveals details of Carillion investigation

The Financial Reporting Council (FRC) says it is focusing on contract accounting, reverse factoring, pensions, goodwill and going concern in its investigations

The watchdog launched its investigation into Big Four firm KPMG’s 2014 to 2017 audit of since-collapsed construction company Carillion in January and its investigation into two former Carillion finance directors, Richard Adam and Zafar Khan, in March.

The FRC was slammed today in a report by two committees of MPs in to Carillion. The regulator was accused of being “far two passive” in its scrutiny.

The FRC is currently engaging in interviews and fact-finding meetings with those under investigation and other relevant witnesses.

Other activities already underway include the review of all the audit files for the period KPMG was auditing Carillion, as well as any other relevant information from the period, such as company emails.

The watchdog is also collaborating with the Financial Conduct Authority, the pensions regulator and the Insolvency Services (the Official Receiver), which is ensuring mechanisms for legally sharing relevant material between the regulators.

While not giving any dates the conclusion of the investigation, the FRC said it “will complete the work relating to Carillion as quickly as possible”.

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