Question
Carillion plc was a British multinational construction and facilities management services company headquartered in Wolverhampton in the United Kingdom, prior to itsliquidation officially, the largest
Carillion plcwas a British multinational construction and facilities management services company headquartered in Wolverhampton in the United Kingdom, prior to itsliquidation officially, "the largest ever trading liquidation in the UK" - which began in January 2018.
Later, in a June 2018 report on audit standards across eight accounting firms in the UK, the FRC (Financial reporting Council)- the regulatory agency of the auditing profession in the UK identified: "failure to challenge management and show appropriate skepticism across their audits." It highlighted a decline in the quality of work undertaken by the Big Four, with Carillion's auditor KPMG performing the worst.
Required: critically evaluate the need for maintaining professional skepticism during an audit.
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