REG - Financial RepCouncil - Closure of investigation under Accountancy Scheme

FrasersAnnouncement

17/03/2023 08:15

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RNS Number : 3471T  Financial Reporting Council  17 March 2023

Closure of investigation under the Accountancy Scheme

17 March 2023

The Financial Reporting Council (FRC) today announces the closure of its
Accountancy Scheme investigation in relation to the preparation and approval
of the financial statements of Sports Direct International plc ("SDI") for the
52 week period ended 24 April 2016.

 

Having considered the representations provided, the Executive Counsel has
decided in the circumstances of this case that the test for bringing
enforcement action is not met. Accordingly, the case has been closed. SDI was
not the subject of the FRC's investigation.

 

Under the Accountancy Scheme, the FRC may investigate Accountancy Scheme
Members and Member Firms.

 

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
(https://www.frc.org.uk/getattachment/241860c7-34e0-428c-a17c-82781373cd00/Enforcement-sanctions-imposed-against-Audit-firms-and-Audit-partners-August-2022-updated.pdf)
can be found here.

 

3.       The FRC is the independent, investigative and disciplinary body
for accountants and actuaries in the UK dealing with cases which raise
important issues affecting the public interest. In brief, the stages of the
disciplinary process under the Accountancy Scheme are:

·    Decision to investigate

·    Investigation

·    Decision whether to bring enforcement proceedings against Member Firm
or Member and, if so decided, referral to Disciplinary Tribunal

·    Tribunal hearing

·    Determination and imposition of sanction and/or costs orders

 

Under the Accountancy Scheme the FRC can start a disciplinary investigation in
one of two ways: (i) the professional bodies can refer cases to the FRC; and
(ii) the FRC may decide of its own accord to investigate a matter. The Conduct
Committee will consider each case identified or referred to it and decide
whether or not the criteria for an investigation are met.

 

4.       The criteria are specified in paragraph 5(1) of the Accountancy
Scheme. A Member or Member Firm shall be liable to investigation under this
Scheme only where, in the opinion of the Conduct Committee the matter raises
or appears to raise important issues affecting the public interest in the
United Kingdom and there are reasonable grounds to suspect that there may have
been Misconduct or it appears that the Member or Member Firm has failed to
comply with any of his or its obligations under paragraphs 14(1) or 14(2) of
the Scheme.

 

5.       Investigations are conducted by Executive Counsel and the
Enforcement Division.

 

6.       All media enquiries should be directed to the FRC
communications team:

 

·    Kate O'Neill, Director of Stakeholder Engagement and Corporate
Affairs, on telephone 07714415229 or email: k.oneill@frc.org.uk
(mailto:k.oneill@frc.org.uk) .

·    Adam Mohamed, Communications Manager, on telephone: 020 3145 9430 /
07920874687 or email: a.mohamed@frc.org.uk

7.       If you no longer wish to receive press releases from the FRC
please email unsubscribe@frc.org.uk (mailto:unsubscribe@frc.org.uk) .

 

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