Audit regulator looking into Manchester City accounting

No formal investigation has started, but the regulator is making inquiries into the case. The UK audit regulator has confirmed it is leading inquiries into accounting irregularities at Manchester City. The Financial Reporting Council confirmed in a letter to the House of Commons business select committee it had taken over "regulatory consideration" of the case from the Institute of Chartered Accountants in England and Wales on 30 September. No formal investigation has started, but the FRC is making inquiries into the case. It comes after Manchester City were found guilty by an independent commission of all charges relating to breaches of the Premier League's financial regulations between the 2009-10 and 2017-18 seasons, including by artificially inflating the club's financial position by more than £900m.

City are appealing the verdict. The FRC has greater resources, and greater powers, to apply sanctions if it does find evidence of violations. It routinely oversees accounting standards at bigger institutions such as listed public companies, but not football clubs. The FRC can look into the conduct of BDO, Manchester City's auditors, to ask whether the audit was in line with the rules. It can also apply sanctions to individuals such as directors or employees of the Etihad club, if they are members of professional accountancy bodies. BDO is the UK's fifth-biggest accounting firm, but claims