THE FRC has launched a formal investigation into Baker Tilly's audit of electric vehicle specialist Tanfield Group.
Baker Tilly, ICAEW-member Richard King and Steven Railton, who is registered with ACCA, were named in the official complaint relating to work on Tanfield Group's accounts for 2007.
It follows an initial investigation by the AADB in 2010 of the ICAS member firm's audits of the manufacturer's 2007 and 2008 financial statements.
The FRC alleges the auditors' conduct "fell significantly short of the standards reasonably to be expected" by the industry. The parties "failed to act in accordance with the fundamental principle of their professional bodies' codes of ethics requiring them to act with professional competence and due care", it added.
No further action will be taken in respect of the 2008 Tanfield Group accounts, the FRC said. An independent disciplinary tribunal will be appointed in due course.
A spokesman for Baker Tilly said: "The complaint relates to specific aspects of an audit assignment that was completed almost six years ago. As the matter is subject to the formal regulatory processes of the FRC, it is professionally inappropriate to comment at the present time."
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