West Bromwich Building Society, the latest mutual to be facing difficulties, is struggling to clear its accounts with auditors KPMG.

KPMG is believed to have informed the Financial Services Authority that it may not be prepared to sign off the numbers with an unqualified opinion due to concerns about the society’s balance sheet strength.

As is standard procedure in the case of banks and building societies, auditors must contact the regulator if they plan to issue an 'emphasis of matter' opinion or refuse to clear a lender as a 'going concern'.

Sunday Telegraph