The UK’s Financial Reporting Council (FRC) has launched an investigation into global audit firm KPMG for its audit of HBOS, the bank, for the year ending 2007. A statement from the FRC said: “This investigation has been instituted by the FRC’s Conduct Committee following the completion of the Executive Counsel’s preliminary enquiries announced on 21 January 2016.” The ombudsman said the inquiry comes in relation to KPMG’s use of the “going concern” assumption in preparation of financial statements for the year under review, and will ask whether the firm considered “material uncertainties” that should have been disclosed in the financial statements. KPMG issued a response to the FRC statement calling on the re