AIG, the world’s biggest insurer, admitted at the weekend that discrepancies in its accounts would reduce its book value by $2.7bn (£1.4bn).
Transactions were misrepresented at the insurer, AIG said, through ‘material weaknesses’ in its control systems.
The shares moved up 5%, however, on Monday, and analysts were apparently relieved that the problems had not been as bad as expected.
PwC, the group’s auditor, is to issue an ‘adverse opinion’ on AIG’s controls, the insurer also said.
Simon Wright of CareersinAudit.com discusses how an effective cyber defence force is critical to businesses worldwide and how internal auditors can make the transition to a new career in cyber security
The FRC has said that the investigation will 'consider, but not be restricted to, issues regarding misstated accounting balances'
Craig Maxwell joins the audit and assurance team in Scotland
Stephen Grayson to join the audit department in Manchester