UK’s FRC Opens Probe Into KPMG Audit Of Wood Group Financial Statements

The UK’s Financial Reporting Council (FRC) has started an investigation into KPMG’s audit of oilfield services and engineering company Wood Group for the financial year ending December 2023.

The accounting regulator is also examining two unnamed accountants over financial statements and communications linked to Wood Group’s Projects Business Unit between 2022 and 2024. The investigation was approved by the FRC’s Conduct Committee and will be handled by its executive counsel. KPMG said it would cooperate with the regulator to complete the review. Wood Group did not comment on the matter.

The probe follows a fine imposed by the Financial Conduct Authority (FCA) on Wood Group for inaccurate financial information reported in its results for 2022, 2023 and the first half of 2024. The company was acquired by Dubai-based Sidara in March for $292 million after the disclosures affected its share price.