FRC: No inquiry into BDO's Healthcare Locums audit

BDO IS NOT under investigation by the Financial Reporting Council for signing off the accounts of beleaguered medical recruitment firm Healthcare Locums (HCL).

Cameron Scott (pictured), executive counsel of the FRC's Accountancy & Actuarial Discipline Board, said there is no inquiry into the mid-tier firm, adding: "I'm not sure where The Telegraph got its story from".

The Telegraph yesterday said it "understands" an investigation will be carried out. BDO representatives declined to comment, saying it would be inappropriate before HCL has completed its own inquiry into the accounting irregularities that led to the suspension of its CFO and executive vice-chairman, followed by the resignation of three more board members.

Scott said the AADB "is aware of the position and will monitor it very closely" but confirmed that no investigation has been launched.

Trading in HCL shares was suspended on 25 January after "serious accounting irregularities" were uncovered; Grant Thornton was drafted in to help with a forensic examination of the accounts, paying particular attention to "aggressive accounting practices regarding revenue recognition, capitalisation of costs and impairment of fixed assets".