As the Co-operative Bank prepares to cut hundreds of jobs as part of a rescue plan, questions have been asked about the thoroughness of it's auditor, KPMG.
KPMG said that it did some due diligence before the Co-op's troubled merger with Britannia Building Society, which was largely blamed for a £1.5bn capital shortfall at the bank. Earlier this week, the Co-operative Bank said it would cut about 15% of its branches. Hundreds of jobs are expected to be lost.
In a statement to AccountingWEB, KPMG said that its due diligence work "did not include a recommendation on the merits of the Britannia deal.”
A spokesperson for the profession's regulator, the Financial Reporting Council (FRC), said...