Carillion’s collapse under a £1.5 billion debt burden exposed weaknesses in auditing, governance, and risk management. Auditors faced criticism for approving accounts despite aggressive accounting practices and long-term contract risks.
The failure triggered investigations into audit quality and reliance on management information. It highlighted systemic vulnerabilities in oversight of large companies.
As a response, the creation of the ARGA was proposed to strengthen audit regulation and corporate accountability.
Carillion remains a stark reminder that robust auditing and governance are essential to protect investors and the wider public.
