Manchester City’s books under audit regulator’s scrutiny

The United Kingdom’s Financial Reporting Council (FRC) has begun inquiries into alleged accounting irregularities at Manchester City following the club’s conviction for breaching Premier League financial regulations.

According to the BBC, the regulator confirmed it assumed responsibility for reviewing the case from the Institute of Chartered Accountants in England and Wales on September 30.

Although no formal investigation has commenced, the FRC is examining potential accounting violations involving the club and its auditors, BDO.

An independent commission previously found Manchester City guilty of financial breaches covering the 2009-10 to 2017-18 seasons, including artificially inflating its financial position by more than £900 million.

The commission also found that City gave auditors a “misleading impression” of arrangements involving shareholder funds.

Manchester City has appealed the verdict, arguing that it contains “material errors, of law, principle and fact and is unsafe”.

The regulator could impose sanctions if violations are established, while lawmakers have called for stronger regulatory oversight.