Entain, which owns brands including Ladbrokes, Coral, and Bwin, paid a £615 million fine in 2023 as part of a deferred prosecution agreement relating to a bribery probe into its former Turkish business between 2011 and 2017.

This new investigation is a setback for KPMG, which has been striving to improve its audit quality and restore its reputation following a series of scandals. Notably, the firm faced heavy criticism for its work on the collapsed construction and outsourcing firm Carillion.

KPMG’s UK chief executive, Jon Holt, has been leading efforts to improve the firm’s performance, including creating a dedicated team for overseeing banking audits.

The FRC’s conduct committee initiated the Entain audit probe in November, although specific details regarding the focus of the investigation have not been disclosed.

A KPMG spokesperson said: “We will co-operate fully with the FRC to conclude this matter as quickly as possible.”