A senior lecturer in the Suffolk Business School has today given his reaction to the news that the Financial Reporting Council will investigate KPMG over its audit of HBOS.
Dr Atul K. Shah, who is the course leader for BA (Hons) Accounting and Financial Management, said "Mine is the only research paper exploring the reasons for this HBOS audit failure in detail - my research clearly shows that this is urgently needed, and some action has now been taken."
"I have spent two years researching the HBOS banking failure, and through a variety of techniques, uncovered the real reasons behind the KPMG audit failure and cover-up. My research has now gone viral, and over 900 people have read the paper in just a few months."
Today, 21 January, the Financial Reporting Council (FRC), which acts as the UKs accountancy watchdog has taken steps to launching an investigation into KPMG over its audit of HBOS.
Accounting specialists, including Dr Shah, have criticised the time it has taken for an investigation. Commenting in the Financial Times, Dr Shah said Over seven years after the collapse of HBOS, the FRC is beginning preliminary enquiries- is this a joke? This proves that the FRC is owned and controlled by the Big Four and is not fit for purpose. It is only reacting to the pressure from the Treasury.
KPMG said it was co-operating with the FRC.
This article has been compiled with information supplied from the Financial Times