The Treasury Committee plans to hold a hearing with chiefs at the Financial Reporting Council (FRC) to understand why the audit regulator dropped its investigation into KPMG’s role in the pre-crash HBOS audit
This follows the release of an FRC report into its enquiries and investigation of KPMG’s 2007 and 2008 audits of HBOS.
The FRC has also published a letter from its chief executive, Stephen Haddrill, to Nicky Morgan MP, chair of the Treasury Committee.
Commenting on the report, Morgan said: ‘This long-awaited report rightly acknowledges that the FRC should have been more "proactive" in investigating KPMG's audit of HBOS.
‘It was only through pressure from the Treasury Committee that the FRC decided to act.
‘As Mr Haddrill says, the report sets out the lessons that the FRC has “learnt for the future”. We will be calling the FRC to give evidence in the New Year to discuss whether their conclusions go far enough.’