Financial Reporting Council FRC investigation (0643I)

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RNS Number : 0643I

Financial Reporting Council

19 March 2018

Investigation into the preparation and approval of the financial statements of Carillion plc

19 March 2018

The Financial Reporting Council (FRC) has commenced an investigation into the conduct of Mr Richard Adam and Mr Zafar Khan, former Group Finance Directors of Carillion plc and members of the ICAEW, in relation to the preparation and approval of the financial statements of Carillion plc for the years ended 31 December 2014, 2015 and 2016, and the six months ended 30 June 2017, and the preparation and reporting of other financial information during the period 2014-2017 . The investigation will be conducted under the Accountancy Scheme.

The FRC announced an investigation under the Audit Enforcement Procedure into the audit of the financial statements of Carillion by KPMG on 29 January 2018.

The investigations will be undertaken by the FRC's Executive Counsel and Enforcement Division as quickly and thoroughly as possible.

The FRC is liaising closely with the Official Receiver, the Financial Conduct Authority, the Insolvency Service and The Pensions Regulator to ensure that there is a joined-up approach to the investigation of all matters arising from the collapse of Carillion.

Notes to editors:

1. The Financial Reporting Council's (FRC) mission is to promote transparency and integrity in business. 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. In relation to enforcement matters, the FRC is the independent, investigative and disciplinary body for accountants and actuaries in the UK dealing with cases which raise important issues affecting the public interest. In brief, the stages of the disciplinary process under the Accountancy Scheme are:

   --     Decision to investigate 
   --     Investigation 

-- Decision whether to bring enforcement proceedings against Member Firm or Member and, if so decided, referral to Disciplinary Tribunal

   --     Tribunal hearing 
   --     Determination and imposition of sanction and/or costs orders 

Under the Accountancy Scheme the FRC can start a disciplinary investigation in one of two ways: (i) the professional bodies can refer cases to the FRC; and (ii) the FRC may decide of its own accord to investigate a matter. The Conduct Committee will consider each case identified or referred to it and decide whether or not the criteria for an investigation are met.

The criteria are specified in paragraph 5(1) of the Accountancy Scheme. A Member or Member Firm shall be liable to investigation under this Scheme only where, in the opinion of the Conduct Committee the matter raises or appears to raise important issues affecting the public interest in the United Kingdom and there are reasonable grounds to suspect that there may have been Misconduct or it appears that the Member or Member Firm has failed to comply with any of his or its obligations under paragraphs 14(1) or 14(2) of the Scheme.

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: [phone] or email: [e-mail]. 
   --     Alana Sinnen, Communications Manager, on telephone: [phone] or email: [e-mail]. 

This information is provided by RNS

The company news service from the London Stock Exchange

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March 19, 2018 03:00 ET (07:00 GMT)