Key facts
- The Financial Reporting Council (FRC) has initiated an investigation into an accountant at P&O Ferries.
- The probe focuses on the accuracy of financial information supplied to the company's auditor between December 2020 and December 2021.
- KPMG, the former auditor, resigned in March 2025 due to issues meeting auditing deadlines.
- P&O Ferries subsequently hired a smaller firm, Just Audit & Assurance, to handle its overdue accounts.
The Financial Reporting Council (FRC) has launched an investigation into an accountant employed by P&O Ferries. The probe aims to assess the accuracy of financial information provided to the company's auditor during the period between December 2020 and December 2021.
The FRC clarified that the investigation pertains to a single individual and does not imply any wrongdoing by other parties or entities. The decision to open the investigation was made in February 2026 and will be overseen by the FRC's executive counsel.
This development follows the resignation of Big Four accountancy firm KPMG as P&O Ferries' auditor in March 2025. KPMG had served as the auditor for nearly two decades but stepped down citing the impossibility of completing the 2023 accounts audit to the required standard within the management's timeline, attributing the delay to unresolved issues.
Following KPMG's exit, P&O Ferries appointed Just Audit & Assurance, a smaller four-person accountancy firm, in June 2025 to audit its overdue financial statements. Experts have raised concerns about P&O Ferries' financial health and governance standards due to this change in auditors.