Carillion Quiz

Who were the auditors for Carillion?

• KPMG

• PwC

• Deloitte

• EY

1.  How much did Carillion write down? 

• €855M

• €945M

• €845M

• €955M

What is the name of the new audit regulatory body that is to be introduced by the UK government?

• 1. Financial Reporting Council (FRC)

• Audit, Reporting and Governance Authority (ARGA)

• Financial Conduct Authority (FCA)

• Insolvency Service (INSS)

Which of the below was NOT one of the audit red flags for Carillion?

• Money Laundering

• Lack of Transparency

• Aggressive Accounting Practices

• High debt levels

Which of the following was a way the company manipulated their financial statements?

• Negative accruals

• Depreciation

• Investments

• Bonds

What was the purpose of negative accruals?

• Increase revenue

• Decrease cost

• Increase Asset

• Decrease liability

1. Carillion’s Days Payable Outstanding (DPO) is shortened after the fraud was uncovered and financial statement figures being restated.

• True

• False