The disciplinary body for accountants has launched an inquiry into events surrounding the collapse of contractor Connaught in September

The Accountancy and Actuarial Discipline Board said it was investigating the firm’s auditor, PriceWaterhouseCoopers, and other accountants, in “connection with events leading up to Connaught plc being placed into administration”.

It said the inquiry would look at the “preparation, approval and audit of the financial statements of Connaught plc and subsidiaries for the year ended 31 August 2009 and the preparation and approval of the interim financial statements for the six months ended 28 February 2010”.

Connaught’s collapse came amid widespread allegations of aggressive accounting practices at the firm.