The U.K. Financial Reporting Council (FRC) on Friday announced the end of an investigation into an accountant that prepared and approved financial statements at collapsed alcohol retailer Conviviality.
The probe was launched in July 2018, at the same time the FRC commenced an investigation into KPMG’s audit of Conviviality’s financial statements for the year ended April 30, 2017. The FRC did not identify the accountant, aside from the fact the person is a member of the Institute of Chartered Accountants in England and Wales.
The FRC said Friday its executive counsel determined the test for bringing an enforcement action against the individual was not met following a detailed review of evidence. Despite the announcement, KPMG itself remains under investigation by the FRC.
The Big Four firm is also the subject of several other ongoing FRC probes, including a long-running investigation into its audits at collapsed construction firm Carillion. In September, the FRC issued a disciplinary formal complaint against KPMG accusing the firm of providing “false and misleading” information during the Carillion investigation process.
Conviviality entered administration in April 2018. The company’s financial statements have been closely scrutinized; the FRC in July 2020 fined Grant Thornton UK £1.95 million (then-U.S. $2.4 million) for firmwide ethical and independence failures concerning its audit at Conviviality for the year ending April 30, 2014.
No comments yet