The UK’s accounting watchdog has completed its initial investigation into the collapse of government contractor Carillion.
However, the report into how auditor KPMG gave Carillion a clean bill of health before its spectacular and costly collapse in January 2018, is not going to be published yet.
Carillion, which at the time of its collapse had more than 190,000 employees working on private and government contracts to build or maintain schools, roads and hospitals, entered compulsory liquidation under a £1.5bn debt pile after it failed to secure a rescue deal with lenders or the government.
The Financial Reporting Council (FRC) said it delivered its report to KPMG towards the end of last month following an “extensive investigation” into the financial statements of Carillion PLC for the years ended December 31, 2014, 2015 and 2016 and additional audit work carried out during 2017.
KPMG will have an opportunity to respond and once this is considered, the FRC will make a decision about whether to pursue enforcement proceedings.
The FRC said it was not possible to say when the outcome of the investigation will be made public.