The collapse of Carillion has generated fresh lines of inquiry into the health of UK corporate life, and as a result the debate around governance and scrutiny has taken a new turn- focusing on the role of the building giant’s auditor KPMG.

Stephen Haddrill, chief executive of the Financial Reporting Council has said an investigation by the accounting regulator will question why Carillion directors were able to continue to assert it was a going concern at July’s profit warning and why that assertion was not challenged by KPMG.

Mr Haddrill has also called for new reviews into the anti-competitive powers of the Big Four accounting firms and the possible rotation of auditors so that they are not considered too close to a company’s management team.

The ramifications could be immense- especially as the joint business and works and pension select committee, that Mr Haddrill attended this week, has been convened to investigate the collapse of Carillion.

Labour MP Frank Field, one of its co-chairs, has been asking this week whether PwC, KPMG, Deloitte and EY should be broken up. Financial Director has asked Mr Field for an interview. Watch this space.