The Financial Reporting Council has launched investigations into statutory audits of State Oil Limited conducted by KPMG LLP and PKF Littlejohn LLP, alongside an investigation into the conduct of an individual accountant.
Scope of the Regulatory Investigations
The Financial Reporting Council has commenced investigations concerning State Oil Limited, a company within the Prax Group.
An investigation under the Accountancy Scheme has been opened into the conduct of an individual accountant regarding the financing arrangements of State Oil Limited from February 2021 to June 2025.
The regulator has also initiated investigations under the Audit Enforcement Procedure into statutory audits of State Oil Limited's consolidated financial statements. These cover the audits by KPMG LLP for the financial years ended 28 February 2022 and 28 February 2023, as well as the audit by PKF Littlejohn LLP for the financial year ended 29 February 2024.
Governance and Next Steps
The decisions to open these enquiries were made during a meeting of the FRC Conduct Committee on 21 July 2026.
All investigations will be carried out by the FRC Executive Counsel.
The FRC noted that the opening of an investigation does not mean that findings of breach or misconduct have been or will be established, and the notice does not constitute an enquiry into any other individuals or entities.
| Subject | Quadro di riferimento | Scope / Period | Investigating Body |
|---|---|---|---|
| Individual Accountant | Accountancy Scheme | Financing arrangements (February 2021 to June 2025) | FRC Executive Counsel |
| KPMG LLP | Audit Enforcement Procedure | Consolidated financial statements (FY ended 28 Feb 2022 & 28 Feb 2023) | FRC Executive Counsel |
| PKF Littlejohn LLP | Audit Enforcement Procedure | Consolidated financial statements (FY ended 29 Feb 2024) | FRC Executive Counsel |
Domande frequenti
Which audit firms are under FRC investigation regarding State Oil Limited?
The FRC is investigating KPMG LLP for the statutory audits of the consolidated financial statements for the years ended 28 February 2022 and 28 February 2023, and PKF Littlejohn LLP for the financial year ended 29 February 2024.
Does opening an FRC investigation imply guilt or misconduct?
No. The Financial Reporting Council explicitly states that the decision to open an investigation does not indicate that findings of misconduct or breaches of Relevant Requirements have been or will be made.
