The government has forwarded an investigation into the demise of Farepak to the profession’s disciplinary body the Accountancy and Actuarial Discipline Board.

The Companies Act investigation into the affair was concluded this week, with the government saying it was considering whether to take any legal action.

Junior business minister Gareth Thomas said: ‘Legal advice is being obtained on the report to decide what further action is merited.’

He said that the report could not be published under the Companies Act until any open court proceedings took place but he said decisions on prosecution would be swift.

The AADB is already looking into the conduct of accountants involved. There has been no indication as to who the AADB is looking at specifically.

Newcastle Central MP Jim Cousins ­ a member of the Commons Treasury Committee ­ said: ‘I am pleased that the report has been referred to the AADB… I think this will be a big test as to the AADB’s effectiveness.’