Financial Reporting Council's enquiries into the auditing of HBOS

03 February 2016

Rt Hon. Andrew Tyrie MP has written to Stephen Haddrill, Chief Executive of the Financial Reporting Council, with a set of questions concerning the FRC’s preliminary enquiries into the auditing of HBOS.

Chair's comments

"The HBOS report exposed the staggeringly poor quality of HBOS' loan book. The regulators looked in depth at the underlying causes, but left an assessment of the role of the auditors to the FRC.

Having originally declined to investigate the HBOS case in 2013, the FRC says that it has now launched what it calls 'preliminary enquiries' in to certain elements of the auditing of HBOS.

I have written to the FRC to seek assurances from the FRC about both the scope, independence and rigour of these initial enquiries. The Committee will be watching the FRC’s work closely.

Given the shocking delay in initiating this work, a less than thorough job would be inexcusable."

Further information

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