The accountancy watchdog has kicked off an investigation into Big Four firm KPMG over its audit of gambling giant Entain.

The Financial Reporting Council (FRC) said on Monday that it commenced an investigation in relation to the audit conducted by KPMG of the consolidated financial statements of Entain for the year ended 31 December 2022.

An investigation was launched in 2020 into Entain, the owner of Coral and Ladbrokes, by HM Revenue & Customs (HMRC) over alleged bribery at a former Turkish subsidiary.

The probe resulted in the first ever deferred prosecution agreement (DPA) for the Crown Prosecution Service (CPS) after the owners of Ladbrokes and Coral agreed to settle with HMRC.

The gambling giant agreed to pay a financial penalty plus disgorgement of profits totalling £585m, and to make a charitable donation of £20m and to pay a contribution of £10m to the CPS and HMRC costs.

Back in October, it was revealed that the CPS offered plea discussions with suspects from Entain as it gears up to make charging decisions.

While civil legal action was launched last August against the group after law firm Fox Williams issued civil proceedings on behalf of a group of institutional investors after shares fell in value.

On Monday, the FRC stated that its decision to launch a probe was made at a meeting of the FRC’s conduct committee on 21 November 2024. Its investigation will be conducted by its enforcement division.

Commenting on the news, a KPMG UK spokesperson said: “We will cooperate fully with the FRC to conclude this matter as quickly as possible.”