KPMG drawn into Rolls-Royce row

Rolls-Royce’s bribery and corruption scandal has drawn in its departing auditor, KPMG, which has become the target of a probe by the UK accounting regulator.

The Financial Reporting Council said it has started an investigation into KPMG’s audits of Rolls-Royce’s earnings for 2010 through 2013, citing the engine maker’s deferred prosecution agreement over bribery and corruption allegations that was reached in January.

KPMG said it will co-operate “fully” with the probe, saying it is “confident in the quality of all the audit work” performed for Rolls-Royce.