• Register
Return to: Home > News > Advisory > UK FRC admits it should have acted faster over HBOS audits investigation

UK FRC admits it should have acted faster over HBOS audits investigation

The Financial Reporting Council has admitted in a letter to the Treasury Committee that it should have acted faster during its early enquiries in relation to the investigation of KPMG’s 2007 and 2008 audits of HBOS.

FRC chief executive Stephen Haddrill said in the letter that the FRC should have adopted a “more proactive approach” instead of relying heavily on other regulators which created a substantial gap in inquiries. “We were concerned that the limitations in our powers to secure information from companies meant it was sensible to await the conclusions of the financial services regulators (Financial Services Authority) which had full access to information,” he said.

Therefore, the FRC has asked the Treasury Committee chair Nicky Morgan for support to give the FRC more powers so that it will be easier to bring cases against accountancy firms. The FRC also stated that there should be legislation for accountants in public interest roles to have a similar threshold of accountability as auditors.

The FRC closed its investigation into KPMG’s audit of HBOS in September 2017 as there was no realistic prospect of a finding against KPMG. Hadrill said FRC now recognises that more information should be provided about the reasons for closing an investigation, where it is legal to do so.

The FRC also confirmed that it will conduct a review into its own governance.

Top Content

    Time pressure: Facing up to mental health

    In an ‘always on’ culture, it is becoming increasingly difficult to manage a healthy work-life balance. While companies are beginning to address this problem by introducing different support systems, Joe Pickard finds more could be done to ensure the wellbeing of the professions workforce.

    read more

    Venezuela: the race for the dollar

    With a new currency following hyperinflation, large sections of the population emigrating to neighbouring countries, an economy on the brink of collapse and no apparent solution coming from the government, Jonathan Minter finds a profession struggling to stay afloat in Venezuela.

    read more

    Brazil: transparency and control

    Brazilian accountants have an optimistic view of the impact of more-regular reporting and the implications of audit controversies for the profession. Paul Golden reports.

    read more

    Argentina: looking for a clearer view

    The Argentine accounting profession continues to grapple with the impacts of a weak economy and a culture of financial corruption. Paul Golden takes a closer look.

    read more

    Blockchain: adapting to disruptive tech

    In the relatively few years since digital currencies first began using blockchain technology, the array of potential applications has grown significantly – and continues to expand. Dan Balla, Matthew Schell and Dave Uhryniak from Crowe look at how it impacts accountancy.

    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.