Accountancy’s watchdog tells Treasury Select Committee it should have been more proactive in delving into KPMG’s audit work of HBOS—but lessons have been learned.
CEO Stephen Haddrill. Photo: FRC
Accountancy’s watchdog has admitted that it should have taken a more “proactive approach” in delving into KPMG’s work as auditor of failed bank HBOS.
A Financial Reporting Council (FRC) report into its own processes and lessons learned following HBOS’s collapse and sale to Lloyds, requested by the Treasury Select Committee, states that it should have begun its investigation far sooner, rather than wait for other financial regulators to complete their work.
It is also updating its governance and broadening its mix of skills and experience on its board committees as part of the learning process.
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