Watchdog to start tribunal over Baker Tilly audit issue

CHARTERED accountants Baker Tilly came under fire from the Financial Reporting Council (FRC) yesterday, the latest in a series of issues the watchdog had raised over an audit of accounts conducted for 2007 and 2008.

The complaint launched by the FRC concerns audits of financial statements for Tanfield, a manufacturer of electric vehicles, from 2007. The regulator has delivered a formal complaint to Baker Tilly, which begins the process of a disciplinary tribunal.

The tribunal’s conclusion should bring an end to the complaints, which were first raised by the FRC in 2010. The body alleges that Baker Tilly’s audit “fell significantly short of the standards reasonably to be expected”, and was not in accordance with the sector’s code of ethics.

“The complaint relates to specific aspects of an audit assignment that was completed almost six years ago,” said a spokesman for Baker Tilly, adding that it would be inappropriate to comment further while the investigation is ongoing.

The investigation into the firm’s audit in 2008 was already concluded at an earlier stage, without formal complaints issued, and no further action will be taken concerning that year, according to the FRC.