Carillion finance directors investigated for misconduct

Carillion finance directors investigated for misconduct

The accounting watchdog is investigating two of Carillion’s former finance directors for misconduct.

Financial Reporting Council (FRC) will look at possible misconduct by two former finance directors, Richard Adam and Zafar Khan, for their preparation and approval of the company’s financial statements from 2014 to 2017, as well as their reporting of other financial information over this period.

Adam managed Carillion’s finances from April 2007 to December 2016, and Khan was finance director between August 2016 and September 2017.

The FRC said it would conduct the investigation into Carillion, which went into compulsory liquidation at the beginning of the year, “as quickly and thoroughly as possible”.

An FRC investigation into the audit of Carillion’s financial statements by accountancy firm KPMG was announced in January this year.

The FRC can prevent a finance director who is a member of a professional association from practicing, and can issue fines to those who have fallen “significantly short” of expected standards.

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