business news

Financial Reporting Council launches a probe into auditor of Greensill

Financial Reporting Council launches a probe into auditor of Greensill
Financial Reporting Council launches a probe into auditor of Greensill

The Financial Reporting Council (FRC), the accountancy regulator of the United Kingdom, has reportedly launched an investigation into the accountancy firm, Saffery Champness, auditor of Greensill Capitals, the failed financier of steel tycoon Mr. Sanjeev Gupta.

The FRC also announced a probe into PwC, the firm that audited Wyelands Bank's financial statements. Gupta supposedly controlled the bank, which also lent money some other of his firms.

The Financial Reporting Council stated that it was investigating Saffery Champness' audit of Greensill Capital's financial records for the year to 31st December 2019.

The supply chain finance firm went bankrupt in March, casting doubt on the future of GFG Alliance, the expansive estate that is controlled by Gupta along with his family which owns Liberty Steel.

Following Greensill's collapse, it was revealed that David Cameron, the former Prime Minister of the United Kingdom, had unsuccessfully lobbied leading members of the government and coworkers for loans on the company's behalf.

Lex Greensill, Greensill's founder, was a government adviser throughout Mr. Cameron's tenure as prime minister.

In May, the Serious Fraud Office kicked off a probe into potential fraud, money laundering, and fraudulent trading in connection with the funding and conduct of operations of firms within the Group Alliance of Gupta Family, which included financing deals with Greensill Capital.

A spokesperson from Saffery Champness satiated that as a professional accounting firm, Saffery Champness owes a responsibility of confidentiality to its current and past clients, and, with this matter under investigation, it would be inappropriate to comment at this time. However, the spokesperson further added that Saffery Champness will completely cooperate with the FRC.

The Financial Reporting Council (FRC) stated that it was investigating into PwC about its audit of Wyelands Bank's consolidated financial records for the year ended 30 April 2019.

A representative from PwC stated that PwC will be completely cooperating with the FRC in its investigation.

Source credit: https://www.bbc.com/news/business-57634849

About the author

Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.