Brussels — The UK’s Financial Reporting Council is probing KPMG’s audits of failed builder Carillion, and will check whether ethical and technical standards for auditors were breached. "Several areas of KPMG’s work will be examined including the audit of the company’s use and disclosure of the going-concern basis of accounting, estimates and recognition of revenue on significant contracts, and accounting for pensions," FRC said in an e-mailed statement. "The FRC will conduct the investigation as quickly and thoroughly as possible." Carillion collapsed earlier this month under a £1.6bn pile of debt. The company held hundreds of government contracts to build hospitals and roads, run prisons and serve school meals. Carillion’s spectacular fall has been gathering pace since July after a series of construction contracts soured. The FRC said its probe followed inquiries made since the July 2017 profit warning and would examine audits of financial statements for the years 2014, 2015 and 20...
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