Company News 

Seven days: 2 February 2018

Seven days: 2 February 2018

Auditor in headlights

The messy fallout from the collapse of Carillion continued, after the Financial Reporting Council (FRC) announced it would be investigating auditor KPMG. The big four accounting group had overseen the outsourcer’s accounts since 1999 and signed off on its 2016 figures in March. That was four months prior to management issuing a profit warning in which it took £854m in contract provisions, raised debt forecasts and suspended 2017 dividends. At a joint select committee meeting, head of the accounting watchdog Stephen Haddrill called for competition regulators to investigate the audit market and for the government to re-examine the FRC’s enforcement powers.

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