FRC closes KPMG audit investigation for Entain plc

FRC News

Filed April 2nd, 2026

Detected April 2nd, 2026

Summary

The Financial Reporting Council (FRC) has closed its investigation into KPMG LLP's audit of Entain plc's consolidated financial statements for the year ended 31 December 2022. Following review of all evidence, Executive Counsel decided not to bring enforcement action, and the Respondents are no longer liable under Rule 146 of the Audit Enforcement Procedure. This closure ends the investigation without any findings or penalties.

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What changed

The FRC closed its investigation into KPMG LLP's audit of Entain plc's 2022 financial statements. The investigation was opened under the Audit Enforcement Procedure on 21 November 2024 and announced on 20 January 2025. After reviewing all evidence and considering relevant factors, Executive Counsel determined no enforcement action was warranted, releasing the Respondents from liability under AEP Rule 146.

This closure means KPMG faces no penalties or disciplinary action related to this audit engagement. No changes to audit procedures or reporting requirements result from this decision. The FRC's decision is final and concludes the regulatory matter. Other entities should note this case illustrates that investigations may conclude without findings, and audit firms under FRC scrutiny should continue cooperating fully while investigations are ongoing.

Source document (simplified)

Closure of investigation regarding the audit of Entain plc by KPMG LLP

News types: Investigations

Published: 2 April 2026

This Press Notice concerns an investigation into one or more Statutory Auditor(s) and/or Statutory Audit Firm(s) [1] . The investigation did not relate to any persons or entities other than the relevant Statutory Auditor(s) and/or Statutory Audit Firm(s) and it would not be fair to treat any part of this announcement as constituting or evidencing an investigation into any other persons or entities.

The Financial Reporting Council (FRC) today announces the closure of its investigation into the audit conducted by KPMG LLP of the consolidated financial statements of Entain plc for the year ended 31 December 2022.

The investigation was opened under the Audit Enforcement Procedure (AEP), following a decision by the FRC’s Conduct Committee on 21 November 2024, and was announced on 20 January 2025.

Having reviewed the evidence obtained in the investigation, and having considered all relevant factors, the FRC’s Executive Counsel has decided not to bring Enforcement Action.

Therefore, in accordance with Rule 146 of the AEP, Executive Counsel has decided that the Respondents to the investigation should no longer be liable for Enforcement Action. Accordingly, the case has been closed.