Financial Reporting Council Industry Regulator Statement (4997J)

TIDMBT.A

RNS Number : 4997J

Financial Reporting Council

29 June 2017

Investigation opened into the audit of the financial statements of BT Group plc

PN 29/17 29 June 2017

Following completion of initial enquiries, the Financial Reporting Council (FRC) has commenced an investigation under the Audit Enforcement Procedure into the audits by PricewaterhouseCoopers LLP of the consolidated financial statements of BT Group plc (BT) for the years ended 31 March 2015 to 2017 inclusive.

The decision to investigate follows announcements by BT in relation to accounting issues in its Italian operations.

 
 Notes to editors: 
      1. The Financial Reporting Council (FRC) is 
       the UK's independent regulator responsible for 
       promoting high quality corporate governance 
       and reporting to foster investment. The FRC 
       sets the UK Corporate Governance and Stewardship 
       Codes and UK standards for accounting and actuarial 
       work; monitors and takes action to promote the 
       quality of corporate reporting; and operates 
       independent enforcement arrangements for accountants 
       and actuaries. As the competent authority for 
       audit in the UK the FRC sets auditing and ethical 
       standards and monitors and enforces audit quality. 
      2. To meet its responsibility as the competent 
       authority in respect of audit enforcement, the 
       FRC operates the Audit Enforcement Procedure. 
       This procedure applies to the investigation 
       and sanctioning of breaches of the various requirements 
       of the statutory auditors of Public Interest 
       Entities (PIEs) and any other cases retained 
       by the FRC including AIM companies with a market 
       capitalisation in excess of EUR200m. In brief, 
       the stages of the Audit Enforcement Procedure 
       are: 
 
              *    Initial case examination and decision to investigate 
 *    Investigation 
 
 
              *    Decision by Executive Counsel as to whether to issue 
                   a Decision Notice (a notice with the findings and 
                   recommended sanction); 
 
              *    Referral to Enforcement Committee and decision by the 
                   Enforcement Committee whether to issue a Decision 
                   Notice ; and 
 *    Referral to a Tribunal. 
 
 
            In order for a matter to be referred for investigation 
             by the FRC's Executive Counsel under the Audit 
             Enforcement Procedure, the FRC's Conduct Committee 
             is required to decide whether there is good 
             reason to investigate an Allegation in relation 
             to a Statutory Auditor and/or a Statutory Audit 
             Firm. 
 
            Investigations are conducted by Executive Counsel 
             and the Enforcement division. 
      3. All Press enquiries should be directed to: 
 
              *    Peter Timberlake, Head of Communications, on 
                   telephone: [phone], or email: 
                   [e-mail]. 
 
              *    Rita Carolan, Communications Manager, on telephone: 
                   020 7492 2307/ 07428 149096 or email: 
                   [e-mail]. 
 
              *    Alana Sinnen, Communications Manager, on telephone: 
                   020 7492 2395/ 07949 005526 or email: 
                   [e-mail]. 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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June 29, 2017 02:00 ET (06:00 GMT)