• Register
Return to: Home > News > 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

    Accountancy Europe: the winner takes it all

    Jonathan Minter spoke to Olivier Boutellis-Taft, chief executive officer at Accountancy Europe, about how technology could change the industry, and how training needs to keep up to enable the profession to develop

    read more

    Embracing global technology trends

    Accountancy Europe’s Digital Day 2018 found the European accounting profession looking to tackle the challenges presented by new technologies head on. Jonathan Minter reports from the day

    read more

    IMA Conference: automation of the audit

    At the annual conference of the Institute of Management Accountants (IMA) in Indianapolis, Deloitte partner Alex Smith gave a presentation on digital transformation in the profession. Joe Pickard spoke to Smith following the presentation to find out more about his views on the future of audit

    read more

    IMA Conference: technology and the human effect

    The annual conference of the Institute of Management Accountants (IMA) took place in Indianapolis this year. Members of the profession gathered to hear the latest from the institute and other market players, covering some of the challenges and opportunities the profession faces.

    read more

    The Caribbean: a digital paradise

    The ICAC hosted its 36th annual conference in June this year – very much looking to the future following a tough 2017 for the Caribbean. Jonathan Minter spoke with chief executive officer Misha Lobban Clarke

    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.