Joined-up investigation into the Carillion collapse

Monday 29th January 2018
Birmingham Head Office as sun sets over Carillion

The Financial Reporting Council (FRC) said that, following inquiries made since Carilion’s profit warning in July, it will now open an investigation under the Audit Enforcement Procedure (AEP) over its audits of collapsed construction giant Carillion. The probe will cover the years ended 2014, 2015 and 2016, and additional audit work carried out during 2017. The FRC also pledged to conduct the investigation “as quickly and thoroughly as possible” Conducted by the FRC’s Enforcement Division the probe will consider whether the auditor has breached any relevant requirements, in particular the “ethical and technical standards” for auditors.

KPMG’s audit of the company’s use and disclosure of the going concern basis of accounting, estimates and recognition of revenue on significant contracts and accounting for pensions will all come under the FRC’s microscope..“The FRC is progressing with urgent inquiries into the conduct of professional accountants within Carillion in connection with the preparation of the financial statements and other financial reporting obligations under the Accountancy Scheme.

“The FRC is liaising closely with the Official Receiver, the Financial Conduct Authority, the Insolvency Service and The Pensions Regulator to ensure that there is a joined-up approach to the investigation of all matters arising from the collapse of Carillion,” the FRC said.

But The Scotsman  reckons that thousandst of Scottish jobs are now at risk following the collapse of Carillion. The Scottish Government reassures the public it has contingency plans for infrastructure projects being handled by the defunct company. However, the Unite trade union said it could not specify how many jobs could be lost north of the Border after the firm was taken into the hands of liquidators yesterday morning.
Union leaders said they believed the number would run into thousands following the failure to find any funding deal to save Carillion. The UK government  handling the liquidation process, tells Carillion employees to turn up to work, insisting “You will get paid”. However, on private sector contracts, jobs are only protected for 48 hours after a firm’s collapse. Carillion has a number of high-profile contracts north of the Border.  However, only three are advertised in Edinburgh -Security Office, cleaning operatives 
Carillion head office is in Manchester.   The Carillion jobs in Edinburgh on the web, were for a security officer job, cleaning operatives, electrician and electrical engineer.  But as yet unknown is who will scoop up My Turriff development?

 

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