XL auditor warned of 'financial irregularities in 2006'

The former auditor of collapsed tour operator XL warned of “financial irregularities” at the firm almost two years ago, it has emerged.

In a strongly-worded resignation letter, accountancy firm KPMG claimed in October 2006 that it was blocked from investigating alleged misrepresentations by company directors that could have resulted in “material errors” in financial statements.