In a series of scathing joint committee sessions MPs took to task Carillion directors, pension regulators and KPMG and Deloitte auditors grilling them on missed red flags, aggressive accounting and the pension deficit reaching nearly 1bn. In a joint statement after the session probing Carillion directors, committee co-chairs Rachel Reeves and Frank Field said: This morning, a series of delusional characters maintained that everything was hunky dory until it all went suddenly and unforeseeably wrong." KPMG received 29m in audit fees from Carillion while Deloitte netted 11m. Reeves said these audits appear to be a colossal waste of time and money, fit only to provide false assurance to investors, workers and the public. With reference to the statement above discuss the fundamental principles of professional codes of ethical standards and what might have been lacking as regards application of ethical standards on the part of the pension regulators and the auditors KPMG and Deloitte in the Carillion case. [20 Marks]