Wednesday 17 July 2019

Further investigation into KPMG's auditing of construction giant Carillion opened

Photo: PA
Photo: PA
Independent.ie Business Desk

Independent.ie Business Desk

The UK's Financial Reporting Council (FRC) said it had opened a further investigation into KPMG's auditing of collapsed construction giant Carillion.

The watchdog said the probe related to the provision of materials to the FRC by KPMG in connection with the FRC's Audit Quality Review into aspects of the audit of Carillion for the year end 2016.

The decision to open the second probe followed matters "self reported" by KPMG, it added.

The FRC said it "continues to progress its original investigations in relation to the collapse of Carillion in conjunction with other regulators".

It said: "A key area of focus has been the financial performance of Carillion's major contracts in both the construction and services divisions, and whether Carillion management and its auditors ensured that this was appropriately reported in its financial statements.

"The investigations are also considering conduct relating to pension liabilities, goodwill, cash disclosures and going concern."

The FRC said its investigations will continue "well into 2019" but stressed they were at a "critical stage" in the process.

It said it was analysing a "very significant" number of documents and had conducted detailed interviews with KPMG audit team members and Carillion bosses, with more planned in early 2019.

PA Media

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