KPMG faces double inquiry by reporting watchdog His duties on Pendragon's audit committee included reviewing the "auditor's performance" and "audit fee." KPMG, which is still Pendragon's auditor, was paid £880,700 in 2010 and £1.28m the following year. In a statement, KPMG said: "We remain of the view that our independence as auditor for these years was maintained." Sources at the firm said former partners can go on to chair clients" audit committees as long as strict rules are maintained. Neither Pendragon or Mr Egglenton would comment. The question of independence is not an issue for the 2012 accounts because two years had passed since Mr Egglenton left KPMG. In response to the other inquiry KPMG admitted that an un-named partner had "mistakenly failed to dispose of the relevant shares on a timely basis," which was "in clear contravention of UK ethical standards." It said it was "very disappointed" at this but had reviewed procedures "to ensure that lessons are learnt." The FRC has the powers to fine or levy other sanctions against firms that break its rules. KPMG last month resigned as the auditor of Herbalife and Skechers USA after a former senior partner admitted leaking confidential information about clients to a friend. The investigations into KPMG came the day after Baronnes Hogg stepped down as FRC chairman, having completed a three-year stint and nine years as a member of the watchdog.