Top Accounting Regulator of Britain Mulls Audit Probe on Carillion

    Photo by Gordon Brown via Wikimedia Commons

    The top accounting regulator of Britain is mulling an investigation into the actions of the staff and auditors of Carillion.

    The Financial Reporting Council (FRC) stated that it had been “actively monitoring this situation for some time.”

    In a statement, the council said:”We have powers to investigate the circumstances relating to the audit of Carillion as well as the actions of the relevant accounting professionals,”

    The actions of the accounting team of Carillion, as well as KPMG, the company’s auditors, were being reviewed.

    Earlier in January, the Financial Conduct Authority (FCA) stared an investigation into announcements that were made by Carillion before the catastrophic contract write-down amounting to £845m on the 10th July 2017.

    By September 2017, contract write-downs have increased to £1.2bn with half-losses rising more than £1.5bn.

    The revelation last summer forecasted a downward spiral for the second-largest contractor in Britain that ended in the collapse of the company into liquidation just before 7am this morning.

    Sources who are close to the FRC said that it was in the “early stages of evidence gathering” with respect to the construction firm. It will take some time before a more announcement regarding a probe would be made.