Audit Enforcement Procedure. In Action or Inaction ? 04/05/2022

 Investigation regarding four audits by King & King

 

 

    4 May 2022

 

This Press Notice concerns the opening of an investigation into the relevant Statutory Auditor(s). The investigation does not relate to any persons other than the relevant Statutory Auditor(s) and it would not be fair to treat any part of this announcement as constituting or evidencing an investigation into any other persons or entities.

 

The Financial Reporting Council ("FRC") has commenced four investigations in relation to the statutory audits by King & King of:

 

-  the consolidated financial statements of Liberty Speciality Steels Limited for the year ended 31 March 2019;

-  the financial statements of Alvance British Aluminium Limited (formerly Liberty Aluminium Lochaber Ltd) for the year ended 31 March 2019;

-  the financial statements of Liberty Steel Newport Limited for the year ended 31 March 2019; and

-  the financial statements of Liberty Performance Steels Limited for the year ended 31 March 2020.

 

The decisions were made at a meeting of the FRC's Conduct Committee on 22 February 2022.

 

The investigations will be conducted by the FRC's Enforcement Division under the Audit Enforcement Procedure.

 

 

Notes to editors:

1.  The FRC's purpose is to serve the public interest by setting high standards of corporate governance, reporting and audit and by holding to account those responsible for delivering them. The FRC sets the UK Corporate Governance and Stewardship Codes and UK standards for accounting and actuarial work; monitors and takes action to promote the quality of corporate reporting; and operates independent enforcement arrangements for accountants and actuaries. As the competent authority for audit in the UK the FRC sets auditing and ethical standards and monitors and enforces audit quality.

2.  Past FRC Enforcement Outcomes can be found here. www.frc.org.uk

3.  To meet its responsibility as the competent authority in respect of audit enforcement, the FRC operates the Audit Enforcement Procedure. This procedure applies to the investigation and sanctioning of breaches of the various requirements of the statutory auditors of Public Interest Entities (PIEs) and any other cases retained by the FRC including AIM companies with a market capitalisation in excess of €200m. The procedure also applies to matters that have been reclaimed from a Regulatory Supervisory Body by the FRC.

Investigations are usually conducted by Executive Counsel and the Enforcement division. The FRC's Conduct Committee may direct that the investigation is delegated to a Recognised Supervisory Body (RSB) which will provide an investigation report to the Executive Counsel so that (s)he may decide whether to issue a Decision Notice.