Chair of the Business, Energy and Industrial (BEIS) Strategy Committee comments on joint BEIS and Work and Pensions Committee evidence session on Carillion with the Pension Regulator and Carillion's internal and external auditors, Deloitte and KPMG.
False assurance to investors, workers and the public
Rachel Reeves, Chair of the Business, Energy and Industrial Strategy Select Committee, said:
"Auditing is a multi-million-pound business for the Big Four. On this morning's evidence from KPMG and Deloitte, these audits appear to be a colossal waste of time and money, fit only to provide false assurance to investors, workers and the public.
We heard from auditors who don't attend audit meetings, fail to visit projects which they themselves say are at risk, and who provide clarity only about what is not included in an audit rather than what is.
Carillion staff and investors could see the problems at the company but those responsible - auditors, regulators, and, ultimately, the directors – did nothing to stop Carillion being driven off a cliff".