Regulatory probes and market concerns on audits and AI

By the Editorial Team · Friday, July 31, 2026

The Financial Reporting Council has initiated an investigation into KPMG’s auditing of John Wood Group’s 2023 financial reports, focusing also on two accountants involved in the company’s projects unit. This probe follows a £13 million fine imposed on John Wood Group for inaccurate disclosures and comes after its acquisition by Sidara, raising concerns about the accuracy and oversight of financial reporting in the industry.

The Financial Reporting Council (FRC) has launched an investigation into KPMG’s auditing practices concerning the engineering consultancy John Wood Group’s financial reporting for the 2023 fiscal year. The inquiry also involves two individual accountants linked to the preparation of Wood’s financial statements within its projects business unit, as well as their interactions with auditors.

This regulatory scrutiny follows the Financial Conduct Authority’s (FCA) decision to impose a £13 million fine on John Wood Group for providing inaccurate information in its annual reports for 2022 and 2023, as well as the interim results for 2024. In March, John Wood Group was acquired by rival firm Sidara, adding further context to the unfolding financial reporting issues.

In a separate development, the London Stock Exchange Group (LSEG) has addressed growing market concerns about the influence of artificial intelligence on its financial performance. The group has implemented its Model Context Protocol (MCP) server, designed to integrate AI technologies such as Anthropic’s Claude and Microsoft Copilot with LSEG’s financial data resources. This platform enables AI agents to access and utilize comprehensive market data, with over 200 customers currently engaged with the service.

LSEG also reported strong financial results for the recent period, surpassing market forecasts. Earnings before deductions rose by 16.7% to £2.5 billion, while profit before tax increased by 29% to £1.3 billion. These figures highlight sustained growth amid ongoing technological and regulatory challenges within the financial and auditing sectors.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.