A former KPMG partner and four former employees were also fined and the accounting giant was ordered to pay a further £3.95m in costs.

The ruling stated: “The seriousness of the misconduct that we have found proved scarcely needs explanation. Effective audits are essential to the financial system. Management and investors should be able to rely on the audited financial reports of the company in question.”

The Audit Quality Review inspection of Carillion found that their had been misconduct in terms of false or misleading meeting minutes.

KPMG staff had also “assisted or encouraged the creation of a false or misleading audit working paper on the selection of construction contracts.”

Elizabeth Barrett, Executive Counsel said: “Misconduct that deliberately undermines the FRC’s ability to monitor and inspect the effectiveness of audits is extremely serious because it obstructs the FRC’s ability to protect the public interest.

“This case underlines the need for all professional accountants, regardless of seniority, to be aware of their individual responsibility to act honestly and with integrity in all areas of their work.”

KPMG’s original fine of £20m  was reduced to £14.4m to reflect KPMG’s self-reporting, co-operation, and admissions.

The FRC launched a probe into KPMG’s auditing of Carillion’s books when the contractor collapsed in January 2018.