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Audit

  • Regulator opens triple probe into Prax Group’s oil audits

    Energy

    The audit watchdog has launched three separate investigations into the auditing of the collapsed UK energy challenger Prax Group.  The Financial Reporting Council (FRC) opened probes into the financial oversight and audit of Prax’s parent company, State Oil, and will also examine Big Four KPMG’s audit of the fiscal years ended 28 February 2022 and [...]

    Industrial plant emitting smoke into an orange, hazy sky with the sun visible.
  • UK government slashes corporate red tape, cutting paperwork ‘longer than The Hobbit’

    Accountancy

    Ministers have announced sweeping reforms to corporate reporting, aiming to save businesses over £450m annually by ditching “Hobbit-length” paperwork. Under the overhaul, small and medium-sized enterprises (SMEs), including local family firms, will be exempt from certain reporting forms and audits, aiming to save businesses thousands of pounds and hours of administrative work. The Department for [...]

    Jonathan Reynolds addressing the SMMT's annual International Automotive Summit (image courtesy of SMMT)
  • KPMG seeks financial support from parent group in wake of audit scandal

    Big Four

    KPMG Australia has asked its parent company for financial support and laid off hundreds of staff after an audit scandal rocked the Big Four firm’s business down under. In its annual results on Monday, the Australian arm of the accounting group said it will cut its workforce by five per cent and partner pay by [...]

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  • Budget supermarket Iceland’s sneaky jab at Big Four management consultants

    August 20, 2026

    Supermarket chain Iceland has shared a subtle dig at management consultants on its website. There is a tongue and cheek reference to a £16m spend on external consultancy firms which include Big Four giant PwC, during a turbulent era for the business in the early 2000s. The retailer, known for selling frozen food, published a [...]

  • Incoming FRC chair sits on board of construction group facing criminal probe

    August 19, 2026

    The woman in line to become chair of the Financial Reporting Council (FRC) sits on the board of a company currently under criminal investigation, City AM can reveal. Dame Jayne-Anne Gadhia was named by the government last month as the next chair of the accounting watchdog and is set to take over in September when [...]

  • Stop burying us in swollen corporate reports, says audit watchdog boss

    August 9, 2026

    The boss of the audit watchdog has warned that the size of annual reports has swelled out of control, costing directors too much time. Richard Moriarty, chief executive of the Financial Reporting Council, said the costs and expectations surrounding annual reports have steadily ballooned as more companies devote pages to environmental, social and governance issues [...]

  • Watchdog probes KPMG over Wood Group audit

    July 30, 2026

    The audit watchdog has opened an investigation into Big Four giant KPMG and two accountants over the accounts belonging to engineering and consulting firm John Wood Group. The Financial Reporting Council (FRC) revealed on Thursday that it officially launched two separate regulatory investigations concerning the financial reporting and statutory auditing of the former London-listed group. [...]

  • EY and London managing partner fined over £1.3m for audit failure

    July 28, 2026

    Big Four giant EY and its London office managing partner have been hit with a nearly £1.3m fine by the financial watchdog for audit failings related to retailer Made.com in 2021. The Financial Reporting Council (FRC) said the sanction follows an investigation into Julie Carlyle, who manages the City office and a portfolio of many [...]

  • Big Four’s AIM exodus accelerates as mid-tier firms seize mandates

    July 27, 2026

    Mid-tier audit firms scooped up new clients as the Big Four giants executed an intentional retreat from London’s junior market. Three years ago, PwC, Deloitte, EY, and KPMG audited nearly half of the FTSE Alternative Investment Market (AIM) 100 index with 49 clients combined. But today, the market share has collapsed to 30 clients, according [...]

  • Regulator flags BDO’s ‘unacceptable’ audit issues for fifth year in a row 

    July 22, 2026

    Accountancy giant BDO has been flagged for an “unacceptable” standard of audit quality by the watchdog for a fifth year in a row. The Financial Reporting Council (FRC) said in its yearly audit quality report that BDO’s overall audit quality fell below expected standards and “has received unsatisfactory results from regulatory inspections” consistently for five [...]

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