KPMG, the accountancy firm forced last month to give up two audits in the US after becoming embroiled in an alleged $1.3m (£840,000) insider trading scandal, is facing a double investigation by the Financial Reporting Council.
by Alistair Osborne, The Telegraph:
The UK’s reporting watchdog said it was inquiring into whether KPMG was properly “independent” when it audited the 2010 and 2011 accounts of car dealer Pendragon and also whether it had committed an ethical breach “in relation to the non-timely disposal of a shareholding in a client entity”.
The Pendragon investigation centres on its new chairman Mel Egglenton, 56, a former regional chairman of KPMG Midlands.
Mr Egglenton, who will succeed Mike Davies after the AGM on May 22, became a non-executive director at Pendragon in December 2010 – only nine months after he stepped down as a partner of KPMG and less than six months after completing consultancy work for the firm.