The FRC this morning said its had delivered its initial report to KPMG  in connection with its extensive investigation into the accountant’s audits of Carillion books.

These covered financial statements made by Carillion for the years ended 2014 to 2016 and extra audit work carried out during 2017.

The FRC would not comment any further on the process until a firm decision was taken on whether enforcement proceedings were pursued.

Usually, after an initial probe, the watchdog would either closes the enforcement case or, if apparent breaches have been found, deliver the Initial Investigation Report for the firm involved to provide representations.

The FRC opened the investigation in January 2018 just days after Carillion went bust.

It has taken longer than the usual two years to report because of the scale and complexity of this case was “exceptional”.

A huge volume of documents and information been has reviewed and analysed, including the accounting for construction and services contracts, pensions liabilities, goodwill and going concern.

A spokesman for KPMG said: “We believe it is important that regulators acting in the public interest review the audit work related to high profile cases such as Carillion and we are cooperating fully with the FRC´s investigation.

“We can confirm we have received the Initial Investigation Report but because the regulatory process is ongoing, we cannot comment further,” KPMG said.