The Financial Reporting Council (FRC) has announced the launch of an investigation into KPMG concerning its audit of Entain’s 2022 financial statements according to a report on Gambling Insider. The decision to initiate this inquiry was made during a meeting of the FRC’s Conduct Committee on November 21, 2024, although specific details regarding the focus of the investigation have not been disclosed.
KPMG, which has served as Entain’s auditor since 2018, has faced scrutiny over the quality of its auditing practices in recent years, resulting in several fines. The firm has reportedly been working to enhance its auditing processes amid increased regulatory oversight.
In a statement, the FRC clarified the scope of its investigation, emphasizing that it pertains solely to the statutory auditor(s) and/or statutory audit firm(s) involved. The statement read:
“This press notice concerns the opening of an investigation into one or more Statutory Auditor(s) and/or Statutory Audit Firm(s). The investigation does not relate to any persons or entities other than the relevant Statutory Auditor(s) and/or Statutory Audit Firm(s), and it would not be fair to treat any part of this announcement as constituting or evidencing an investigation into any other persons or entities.
The Financial Reporting Council (“FRC”) has commenced an investigation in relation to the audit conducted by KPMG LLP of the consolidated financial statements of Entain plc for the year ended 31 December 2022. The investigation will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure.”
