Inquiry into HBOS auditors

THE conduct of accountants in the run-up to the high profile failures of HBOS and BHS is to be probed by the accountancy watchdog.

The Financial Reporting Council has launched an investigation into the conduct of KPMG’s audit of banking giant HBOS for the year before the lender collapsed in 2008. It was subsequently bought by Lloyds.

The FRC is also looking at PricewaterhouseCoopers’ audit of collapsed retailer BHS for the year ended August 30, 2014, when it was owned by Sir Philip Green. He sold the loss-making chain for £1 in March 2015. It fell into administration just over a year later.