FRC looks at KPMG status

The Financial Reporting Council (FRC) has announced it is looking at whether KPMG was independent when it audited Pendragon's financial statements for 2010 and 2011.

KPMG responded in a statement, saying: "We take our professional responsibilities very seriously… we remain of the view that our independence as auditor for these years was maintained."

The firm said a breach of rules on the part of a partner in relation to a shareholding in an unspecified client, but described it as a mistake.