Record numbers of UK financial firms have been forced to hire accounting firms or other outside experts in order to investigate potential problems and their inner workings, the Financial Services Authority has revealed in a report about the role of auditors.
In the fiscal year ending this month, the City watchdog has ordered 140 companies to commission and pay for “skilled persons’ reports” on areas such as capital adequacy, governance and complaint handling.
That is up nearly 60 per cent on the prior year and dwarfs the 18 reports ordered in 2006-2007.
The average cost of a report in 2009-2010, the most recent figure available, was £128,000. The most expensive probe amounted to £4.4m. Read the full story on the FT.com here