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UK regulator considering investigation of HBOS auditor KPMG

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Staff writer ▼ | April 10, 2013
KPMG is in trouble again, this time in the United Kingdom: The Financial Reporting Council (FRC) will consider an investigation of KPMG's role in the fall of financial firm HBOS which made billions of pounds of bad debts.
KPMGKPMG is in trouble again, this time in the United Kingdom: The Financial Reporting Council (FRC) will consider an investigation of KPMG's role in the fall of financial firm HBOS which made billions of pounds of bad debts.


FRC will decide on investigation after the forthcoming PRA report, while the report from the Parliamentary Commission on Banking Standards is already done. FRC is in touch with the PRA and has an access to information from companies' books and records.

"If there is evidence that financial statements were misleading, and there were deficiencies in the audit, we would take this as a basis to launch an investigation into potential misconduct under our powers," said The Financial Reporting Council in the statement.

Four years ago, FRC told the Treasury Select Committee that its enquiries had not shown evidence of an audit failure, however PRA report may change that opionion.

Lloyds Banking Group rescued HBOS and now is also considering a legal action against KPMG for it didn't spot suspicious things in its accounts. The Parliamentary Commission on Banking Standards said that 28 billion pounds had been given to HBOS by the taxpayer and Lloyds.

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