It comes after the regulator issued a complaint on the grounds that the firm, along with two individuals, fell “significantly short” of expected standards of conduct during an audit in 2007.
The complaint followed a 2010 investigation into Tanfield’s audits in December 2007 and 2008, which found no wrongdoing in 2008’s financial statements.
The FRC said that a disciplinary tribunal is likely to make “adverse findings” against the respondents, and that a disciplinary hearing is desirable in the public interest.
Also named as respondents in the case are Richard King of the Institute of Chartered Accountants in England and Wales and Steven Railton of the Association of Chartered Certified Accountants.
A spokesperson for Baker Tilly said: “The complaint relates to specific aspects of an audit assignment that was completed almost six years ago.
“As the matter is subject to the formal regulatory processes of the Financial Reporting Council, it is professionally inappropriate to comment at the present time.”
Further trouble
In April, Baker Tilly faced legal action from a group of investors who felt they were wrongly sold the now suspended Brandeaux property funds.
The investors are seeking compensation over the sale of funds including the unregulated Brandeaux Student Accommodation Fund, which was delisted from the Irish Stock Exchange in March, as well as the Ground Rents, and Dual Assets funds, which were suspended along with Brandeaux’s entire fund range last July.
The funds were sold by advisers at RSM Tenon, which was acquired by Baker Tilly last year.
