The U.K. Financial Reporting Council (FRC) is investigating the work of Big Four firm KPMG during a 2021 audit at agriculture and engineering services provider Carr’s Group.
The regulator’s probe, announced Tuesday, will examine KPMG’s audit for the period ended Aug. 28, 2021. The investigation does not currently relate to any individuals.
The FRC provided no further specifics as part of its announcement.
“We will cooperate fully with the FRC to conclude this matter as quickly as possible,” said a KPMG UK spokesperson in an emailed statement.
Carr’s Group in January announced trading in its shares was halted by the U.K. Financial Conduct Authority because of a delay in the publishing of its 2022 financials. The company published its annual report March 23 and had its trading restored March 29.
In its annual report, Carr’s Group noted it made two prior-year restatements to its financials, both related to revenue recognition. The restatement resulted in increases to revenue and adjusted profit after tax in the year ended Aug. 28, 2021, it said.
Carr’s Group’s 2022 financials were audited by Grant Thornton.
KPMG agreed to pay 875,000 pounds (then-U.S. $1.1 million) as part of a settlement with the FRC announced last week for breaches in its 2016 audit of lighting and wiring product distributor Luceco.
No comments yet