LONDON Jan 20 Britain's accounting watchdog has
started investigating KPMG's book-keeping at the Co-op bank,
which has been hit by a capital shortfall and a drugs scandal
involving it's ex-chairman.
"The Financial Reporting Council has launched an
investigation ... into the preparation, approval and audit of
the financial statements of the Co-operative Bank plc, up to and
including the year ended 31 December 2012," the watchdog said in
a statement on Monday.
The FRC, which has powers to fine and suspend accountants,
said in November it was scrutinising financial reports by the
KPMG said it was understandable there should be appropriate
regulatory scrutiny and it would co-operate fully with the FRC.
"As auditor to the bank we believe that we have provided,
and continue to provide, robust audits which provide rigorous
challenge to the judgements and disclosures proposed by the
bank's management." KPMG said in a statement.
The FRC's investigation comes on the heels of reviews of the
bank announced by its two main regulators, the Prudential
Regulation Authority and the Financial Conduct Authority.