PracticeAccounting FirmsTyrie reiterates call for FRC to probe KPMG over HBOS

Tyrie reiterates call for FRC to probe KPMG over HBOS

MP continues to press Stephen Haddrill to reconsider case for a probe into KPMG's auditing of HBOS

Tyrie reiterates call for FRC to probe KPMG over HBOS

ANDREW TYRIE, the chairman of the Treasury Select Committee and the last Parliamentary Commission on Banking Standards (PCBS), has once again urged the FRC to investigate KPMG’s work as HBOS auditors.

The MP wants Stephen Haddrill, the accounting and audit watchdog’s chief executive to reconsider the case for a probe into the Big Four firm’s auditing of HBOS – from its inception in 2001 until 2008.

In a statement Tyrie said: “In the course of the investigation (into HBOS) by the regulators the FRC was invited, but turned down, the opportunity to launch an investigation into HBOS’s auditor.

“That was a serious mistake. It is now essential, in the interests of public confidence, that the FRC get on with this investigation, and without delay.

In a letter to the FRC, which was shared with the press, Tyrie said the FRC should take action in a bid to “maintain its public and professional credibility”.

The watchdog, which has already stressed that it lacked sufficient grounds to suspect the auditor of misconduct, said it was in receipt of Tyrie’s letter, had noted its contents but had no further comment to make.

The FCA and PRA report, which covers the years between 2004 and 2008, found that HBOS had “kept its auditors under pressure” in an attempt to keep the provisions for bad loans down and tried to defend impairment figures which were later increased to levels that KPMG viewed as “just within the acceptable range”.

The 500-page tome, which took over three years and £7m to compile, revealed that the bank’s management took an upbeat and optimistic view of the funds it had set aside to cover possible bad loans, a scenario flagged up on several occasions by KPMG.

This Treasury Select Committee will this week quiz investigator Andrew Green QC and several Bank of England representatives over the HBOS affair.

 

Related Articles

FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2w Alia Shoaib, Reporter
Top 50+50: Firms fall short on diversity

Accounting Firms Top 50+50: Firms fall short on diversity

2w Alia Shoaib, Reporter
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

4w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

3m Alia Shoaib, Reporter
FRC launches investigation into PwC over BT audits

Accounting Firms FRC launches investigation into PwC over BT audits

3m Alia Shoaib, Reporter
Deloitte rises in auditor rankings with most FTSE 250 clients

Accounting Firms Deloitte rises in auditor rankings with most FTSE 250 clients

1m Alia Shoaib, Reporter
Partner joins BDO from KPMG

Accounting Firms Partner joins BDO from KPMG

1m Alia Shoaib, Reporter
BDO overtakes KPMG to take top spot in AIM auditor rankings

Accounting Firms BDO overtakes KPMG to take top spot in AIM auditor rankings

3m Alia Shoaib, Reporter