KPMG probed over bank audits

Accountancy giant KPMG is facing a potential investigation over the audit work that gave HBOS a clean bill of health in the run-up to its collapse.

The UK's Financial Reporting Council (FRC) confirmed it would consider launching an investigation of KPMG’s role following last week’s damning Parliamentary Commission report in the UK on HBOS and once Britain's Financial Conduct Authority (FCA) presents its findings on the bank’s failure in the autumn.