Accounting watchdog set to announce verdict of probe into KPMG's HBOS audit

William Turvill
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The FRC announced the launch of its probe into KPMG in January (Source: Getty)

The accounting watchdog is set to announce the verdict of its probe into KPMG’s audit of collapsed bank HBOS on Monday.

The Financial Reporting Council (FRC) met last week to consider the outcome of preliminary enquiries.

Read more: FCA confirms it will investigate former HBOS bosses

The body said on Thursday that its conduct committee had “made a decision which following certain procedures will be announced as soon as possible”.

And Sky News first reported on Sunday evening that the verdict would be announced on Monday. The FRC declined to comment.

The FRC announced the launch of an investigation into the accounting firm’s handling of HBOS’ accounts in January.

Read more: KPMG to be investigated over HBOS audit

The body said it would examine KPMG’s role in auditing the failed bank and granting it “going concern” status in 2007, the year before it had to be rescued by Lloyds TSB.

Last December, Treasury Select Committee chairman Andrew Tyrie called for a probe, saying: “The shortcomings of the audit process were serious. It is essential – in the interests of public confidence – that the FRC get on with this investigation, and without delay.”