Wood Group is being investigated by the UK’s financial watchdog following an independent review which found “cultural shortcomings” with its accounting practices.
“Cultural shortcomings” in accounting practices refer to the limitations or weaknesses that arise when cultural factors negatively impact the quality, consistency, or ethics of accounting work. These shortcomings can manifest in several ways due to differences in values, norms, and behaviours across cultures, affecting how accounting standards are set, how financial information is reported, and how ethical decisions are made.
The Financial Conduct Authority (FCA) probe will look into the period between January 2023 and November 2024.
A spokesperson for the Aberdeen-headquartered engineering giant said the company would cooperate fully with the investigation.
It comes after Wood announced in March that an independent review had found “material weaknesses and failures in the Group’s financial culture”.
Wood said it was having to adjust its accounts from the past three financial years after the review.
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The statement in March also said: “The cultural failings appear to have led to instances of information being inappropriately withheld from, and unreliable information being provided to, Wood’s auditors.”
Wood has also announced this morning another extension to the deadline for Sidara to formally present a takeover bid. As discussions continue between the companies, the newly agreed deadline is now set for 5 pm on July 28.
