A1 Assessment Learning outcomes covered in this assignment are LO 1-3. Scenario: In January 2022 KPMG's chief executive Jon Holt admitted that the Big Four firm misled the Financial Reporting Council (FRC) over its audit of collapsed outsourcer Carillion. Following the collapse of the Carillion Group in January 2018, the Financial Reporting Council (FRC) opened an investigation under its enforcement procedures into KPMG's audit of Carillion. The investigation covered the years ended 2014 to 2016, and additional work carried out during 2017. The investigation was conducted by the FRC's enforcement division and considered whether the auditor breached any relevant requirements, in particular, the ethical and technical standards for auditors. Several areas of auditor's work were examined, including the audit of the company's use and disclosure of the going concern basis of accounting, estimates and recognition of revenue on significant contracts and accounting for pensions. The FRC has also conducted enquiries into the conduct of professional accountants within Carillion in connection with the preparation of the financial statements and other financial reporting obligations under the accountancy Scheme. The FRC is liaising with the Official receiver, the Financial Conduct Authority, the Insolvency Service and Pensions Regulator to ensure there is a joined-up approach to the investigation of all matters arising from the collapse of Carillion.