Regulator widens its Carillion probe

THE accountancy watchdog has extended its probe into kPMG’s audit of Carillion for the second time, in a fresh blow to the firm.

The Financial reporting Council (FrC) will look into work on the collapsed contractor’s 2013 accounts but it did not say why it has widened its timeline or when it expects to finish the probe, opened just weeks after Carillion went into administration last January.

It was already looking into kPMG’s sign-off on Carillion’s books for 2014-2016 and the first half of 2017, and probing the outsourcer’s former finance directors, richard adam and Zafar khan.

and the Competition and Markets authority has opened its own probe into the sector. kPMG has come under fire for breaching ethical standards in its work with Ted Baker and misconduct related to insurance claims handler Quindell.

The FrC is to fine it £4m for supervising the Cooperative Bank’s accounts before a £1.5bn capital shortfall was found. kPMG said: ‘We will continue to co-operate fully with the FrC’s investigation.’