Audit investigation will not impact Man City legal battle, says Financial Adviser

A new enquiry by the UK audit regulator will not impact Manchester City’s ongoing legal battle with the Premier League, according to a report by Football Insider.​

The Financial Reporting Council (FRC) confirmed enquiries into accounting irregularities following the club’s recent 114 charges. However, former Man City financial adviser Stefan Borson clarified that the FRC has no authority to sanction the club directly.​

Speaking to Football Insider, Borson said:​“It won’t be Man City themselves that are subject to the investigation. The way the FRC works is it’s the regulator for financial reporting and, therefore, also for accountancy professionals.”​

“It will not investigate Manchester City as an entity; it has no power to do so. But it will look at the individuals who have been involved.”​

“So that will be senior people, most likely senior people, but it can also be more junior at the audit firm to the extent that they were involved in something around the audit that was wrongdoing.”​

“So there may well be individual members of Manchester City’s finance team who are regulated accountants. They may be subject to the FRC’s investigation.”​ The outcome of Man City’s appeal is expected between February and March.