Carillion revisited

If you watch the Work & Pensions Committee inquiry on 30 Jan 2018 re Carillion, you will be witnessing Alternative Dispute Resolution (ADR) in action. The government uses ADR to settle disputes rather than going to court. The committee will be deciding the punishment – not a court. (See slide 2).

The big four accountancy firms KPMG, PwC, EY, and Deloitte are also being questioned about any involvement they have had with Carillion over the past ten years.

Each of the big four accountancy firms is a ‘Professional Services Network’ whereby each outlet is not a branch of the firm, but is a separate legal and independent entity. Therefore, if a KPMG outlet has been involved in any wrong doing, it does not legally affect any other KPMG outlet, nor does it affect the KPMG headquarters in Switzerland.

https://web.archive.org/web/20150506031120/www.kpmg.com/Global/en/about/governance/Structure/Pages/default.aspx

http://archive.is/nnWCS#selection-1713.247-1713.258

http://archive.is/NzLtP#selection-4195.35-4195.76

Ken Craggs
https://twitter.com/BetweenMyths

6 comments for “Carillion revisited

  1. Hereward Unbowed.
    February 1, 2018 at 1:03 pm

    The ‘big four auditors’ cast their blind eyes over the accounts and gave all the UK banks glowing reports – just around 2007.

  2. February 1, 2018 at 2:00 pm

    As they would.

  3. Mudplugger
    February 1, 2018 at 4:28 pm

    Until the inherent conflict of interest is eliminated (same parent group providing audit and operational/consultancy services), then the objectivity of any such audit can not be confidently assumed.

    Even if large companies were obliged to use a wholly different Big-4 firm for their auditing, who’s to say that a level of collusion would not occur? When there’s so few players in the park, then a nod’s as good as a wink to a blind man, as they say.

  4. John in cheshire
    February 1, 2018 at 5:21 pm

    Individuals need to be held to account and if they’ve fallen below the standards that are required of them, they should be punished, including doing some jail time. Otherwise, the past 10 years have changed nothing in the finance industry.

    • Voice of Reason
      February 1, 2018 at 5:39 pm

      Only jail time? I favour some public floggings, with confiscation of all personal assets, after the pension fund raiding of the last 30 years.

  5. February 1, 2018 at 5:49 pm

    Quite like floggings or maybe just the stocks.

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