THE firm that audits the SNP's finances has resigned, the party has confirmed.

The BBC reports that accountants Johnston Carmichael have taken the decision after a "review of its client portfolio".

The firm has worked with the party for more than a decade, but resigned before Murrell was arrested, reports have confirmed. 

READ MORE: Stephen Flynn: Shock to see forensic police tent in SNP probe

The party has until July 7 to present their accounts to the Electoral Commission (EC), as they must every year, or face possible sanctions.

A spokesperson for the SNP said: "We can confirm that Johnston Carmichael will not be providing audit services to the SNP this year.

"The National Treasurer is undertaking a tendering process for alternative provision, and we have advised the Electoral Commission."

The SNP's current treasurer is MSP for Midlothian North and Musselburgh Colin Beattie, who took on the role after MP Douglas Chapman resigned.

The National: Beattie is looking for a replacement firmBeattie is looking for a replacement firm

Police officers investigating the SNP's finances searched the home of former chief executive Peter Murrell on Wednesday, as well as SNP HQ in Edinburgh.

Murrell, who is married to Nicola Sturgeon and shares the property in Uddingston, South Lanarkshire, was arrested but later released without charge.

A spokesman for Johnston Carmichael said: “As a regulated organisation, we adhere to our obligations on client confidentiality and do not discuss client business.”

Under the Political Parties, Elections and Referendum Act 2000, the SNP is required to provide financial statements.

READ MORE: Search of Peter Murrell and Nicola Sturgeon's home comes to an end

The decision means the SNP now have until the first week of July to present their accounts or face possible sanctions, including an independent audit.

On Thursday, new SNP leader Humza Yousaf said it was “very, very clear that the governance of the party was not as it should be”.

He has promised a review of governance and transparency with external input, which will be discussed at a meeting of the party’s national executive committee later this month.

EC rules also state that any party with expenditure or income over £250,000 must also independently audit their accounts and include the report in their submission.

The last SNP accounts for 2021 were published in August last year, showing the party's total income was £4,510,460 and expenditure of £5,262,032.

The party also posted assets of £1,643,454 and liabilities of £1,055,689.

This story was updated to reflect that the auditors quit before the arrest and subsequent release of Peter Murrell, not after.