Watchdog investigates audit of collapsed nmcn

The Financial Reporting Council (FRC) has started an investigation into the audit of collapsed contractor nmcn’s accounts.

Nmcn (formerly North Midland Construction) went into administration earlier this month after continued delays in filing its accounts.

Investment firm Svella bought its telecoms, plant hire, transport and accommodation business divisions. Meanwhile Galliford Try bought the water business and Keltbray bought its infrastructure arm, although no buyer was found for the building business.

The FRC said it would investigate the audit conducted by BDO of the consolidated financial statements of nmcn for the year ended 31 December 2019.

The investigation will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure.

A BDO spokesperson said: “We are aware that the FRC has commenced an investigation in relation to the audit of the 2019 accounts of nmcn plc.  We will obviously cooperate fully with the FRC during its enquiries and assist with any further information it needs. Now that the investigation has started, it would be inappropriate to comment any further.” 

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