THE SNP have signed a contract with new auditors after more than six months without any accountants.

Accountants Johnston Carmichael resigned in October last year after a "review of its client portfolio". The firm had worked with the party for more than a decade.

This means the Electoral Commission will not have to take action as accounts are likely to be submitted on time.

The First Minister confirmed AMS Accountants Group, based in Manchester, is to work with the party on completing accounts for both the party and the SNP Westminster Group.

A source told the BBC: "Humza Yousaf, Stephen Flynn and their teams have had to put in some shift to fix the situation they inherited but they've managed to turn things around in a matter of weeks and both the party and the Westminster group now have auditors in place."

It comes amid an ongoing police investigation into the SNP’s finances, which saw former chief executive Peter Murrell and treasurer Colin Beattie arrested earlier this month. Both were released without charge.

READ MORE: 'Would have been helpful to know before': Humza Yousaf on SNP auditors row

SNP Westminster leader Stephen Flynn said he is "pleased" that the party had appointed auditors and is "confident we'll meet the deadline, as in previous years".

He added: "Throughout this period, SNP MPs have remained focused on standing up for Scotland and supporting our staff. We will now redouble our efforts to hold the Tories and pro-Brexit Labour Party to account for the damage their policies are inflicting on Scotland."

Flynn previously said he understood the party would miss out on around £1.2 million in short money if accounts are not submitted by the deadline on May 31, describing it as a “situation which is in a state of flux”.

SNP leader Humza Yousaf also said he was pleased that the party had secured auditors.

He added: "We take our statutory obligations extremely seriously, so it is welcome news that AMS Accountants Group will complete the accounts for both the party and the SNP Westminster group.

"There is hard work ahead, but it is really encouraging to have them on board as we work towards challenging deadlines."

The First Minister also thanked previous auditors Johnston Carmichael.

It is unclear whether the new firm are forensic auditors as previously requested by a member of the SNP’s governing body.

Bill Ramsay, the convener of the SNP Trade Union Group – the party’s largest affiliate and its representative on the National Executive Committee (NEC) – expressed frustration over recent events and said he had been raising issues on party transparency for some time.

Humza Yousaf previouly said it “would have been helpful” to know about the SNP’s issues with auditors before becoming First Minister.