The UK audit regulator is investigating Manchester City over accounting irregularities following a guilty verdict for breaches of the Premier League's financial regulations.

On 30 September, the Financial Reporting Council (FRC) took over regulatory consideration from the Institute of Chartered Accountants in England and Wales. Although no formal investigation has commenced, the FRC is making inquiries into the case.

Key points include:

• Manchester City was found guilty of violating financial regulations between the 2009-10 and 2017-18 seasons, inflating its financial position by over £900m.
• The club is currently appealing this verdict, claiming it contains "material errors, of law, principle and fact and is unsafe."
• The FRC, equipped with greater resources and powers, can impose sanctions if evidence of violations is found, including reviewing the conduct of BDO, Manchester City's auditors.

The independent commission noted that Manchester City misled auditors about the origin of shareholder funds. The FRC will assess whether the audit complied with regulations and can sanction individuals from the club if they belong to professional accountancy bodies.

Liam Byrne, chair of the business select committee, has called for enhanced powers for the FRC to investigate similar cases, highlighting gaps in its ability to compel evidence and hold directors accountable. He urged the government to address the abandonment of reforms aimed at strengthening accountability in such matters.

BDO, the UK's fifth-largest accounting firm, did not comment on the situation.