Legal & General boss Sir John Kingman in line to spearhead audit watchdog probe

The chairman of Legal & General is on the shortlist to lead an investigation into Britain’s top accounting regulator, according to reports.

Sir John Kingman, previously a prominent figure in Whitehall as Treasury second permanent secretary, is among those being considered to spearhead a review of the Financial Reporting Council (FRC). The candidate could be approved by Downing Street in the coming days, Sky News reported.

The FRC has come under intense scrutiny in recent months, most recently in relation to its oversight of the roles of accounting firms prior to the collapsed of doomed contractor Carillion.

Read more: Carillion’s demise shines a light on an auditor expectation gulf

A parliamentary inquiry into what was Britain’s second-biggest contractor has levelled criticism at the Big Four accountancy firms – PwC, Deloitte, KPMG and EY – and the FRC.

The FRC recently launched its own investigation into the actions of two of Carillion’s former finance chiefs as well as sign-offs provided by auditor KPMG.

The FRC declined a request to comment from Sky News.

Read more: Learning from Carillion? MP inquiries must shed more light than heat