London — Britain’s accounting watchdog is investigating KPMG’s audit of drinks firm Conviviality’s financial statements, weeks after highlighting an "unacceptable deterioration" in the auditor’s work with top British firms. KPMG denied any shortcomings in its audit of Conviviality, which entered administration in April. The Financial Reporting Council is probing Conviviality’s financial statements for the year ended April 2017. "We believe we conducted our audit appropriately and will co-operate fully with the investigation," a spokeswoman for KPMG said in a statement e-mailed to Reuters on Tuesday. The council also said it was looking into the preparation and approval of Conviviality’s financial statements and other financial information. Conviviality was Britain’s largest franchised off-licence and convenience chain, operating stores under the Bargain Booze and Wine Rack brands. The company had experienced margin weakness at the start of 2018 and failed to allow for a £30m tax bil...
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