• Register
Return to: Home > News > Regulation > FRC to investigate KPMG and PwC

FRC to investigate KPMG and PwC

The UK Financial Reporting Council (FRC) has launched two major investigations related to audit work of two of the Big Four firms, KPMG and PwC.

The FRC will review KPMG's role in the HBOS audit and PwC's role in the audit of recently-failed retailer BHS.
The HBOS investigation comes eight years after the bank collapsed and it is to review KPMG's audit for the year ended 31 December 2007.

According to the FRC, the investigation will consider whether KPMG and PwC management's use of the 'going concern' assumption was appropriate in the preparation of the financial statements for the year ended 31 December 2007. The investigation will also consider whether there were material uncertainties about the entity's ability to continue as a going concern that needed to be disclosed in financial statements.

The FRC was less specific about its investigation of PwC in relation to recently collapsed British retailer BHS. The regulator said it has launched "an investigation under the Accountancy Scheme into the conduct of PwC in relation to the audit of the financial statements of BHS Limited for the year ended 30 August 2014".

BHS's collapse was announced in April and could mean over 10,000 job losses and a closure for more than 150 stores.
As part of the investigations both PwC and KPMG could be facing a fine if irregularities are found.

 

Top Content

    Blockchain and the Big Four: does it deserve all the hype?

    Although still in its infancy, blockchain is one of the most talked-about technologies of 2018. Will the blockchain bubble burst, or will it live up to its reputation as the ‘new internet’? Eleanor Jerome investigates

    read more

    Malaysia: Ready to show its strength

    Recent changes have enhanced the quality of audit reports in Malaysia, giving the profession a welcome opportunity to demonstrate its value to clients. Paul Golden reports

    read more

    China: Regulating the Chinese dragon

    Harsh regulatory actions and looming US trade wars have been dampening expectations in a Chinese market still full of potential, finds Jonathan Minter

    read more

    Indigenous Australians: New checks and balances

    With fewer than 40 known qualified Indigenous Australian accountants, Jonathan Minter speaks to Shelley Cable from PwC Australia about how increasing this number is an important part of improving the financial literacy of Indigenous communities

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.