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Politicians criticise FRC in delayed HBOS investigation

The FRC, the UK’s accounting watchdog, made a grave error by delaying an investigation into auditing of HBOS’ accounts, MPs claimed in a new report slamming how regulators dealt with the bank’s collapse.

The group received criticism from The Treasury Select Committee for what it deemed a “lack of curiosity and diligence” in a failure to investigate KPMG’s auditing of HBOS’ accounts at the appropriate time.

The FRC began investigating the audit in June. It will assess the firm’s HBOS audit for the year ending on December 31, 2007 and is set to emphasise the usage of ongoing concern assumptions, and if the uncertainties as to the bank being able to go on should have been made known.

The committee said that while the investigation is finally underway, the response from the FRC seems to be incomprehensible. It went on to say:

“These failures are all the more concerning given the scale of the problems at HBOS, and the clear public interest at stake. It is extraordinarily unhelpful that the FRC has taken so long and has belatedly reconsidered its position, only after considerable pressure from parliament.”

The FRC may have been less than timely with their investigation, but the typical organisation would find their books being pored over far earlier. That certainly applies to HMRC and SMEs across the UK. It is always wise to ensure that accounts are up to date and correct, which is why accountants in the Wirral are so much in demand.

Posted by Peter
August 9, 2016

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