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A report from the Big Four accountant brought in to review Carillion鈥檚 finances has revealed directors were made aware of the company鈥檚 dire position as early as August last year.

Ernst & Young was appointed to review Carillion鈥檚 finances following the company鈥檚 拢845m profit warning the previous month.

Its report, which was presented to the board last August, has been released by the committees running an inquiry into the firm鈥檚 collapse.

It showed EY had found there to be a 鈥渓ack of professionalism and expertise鈥� and a 鈥渓ack of accountability鈥� in the company, while those in charge 鈥減rioritised short term benefits over sustainable performance鈥�.

The report said: 鈥淒espite many layers of management, there is limited visibility and transparency of performance at the appropriate level to make intervention.鈥�

It also suggested that in order to survive the ailing contractor needed to 鈥渞uthlessly rationalise the portfolio鈥� and significantly reduce the number of people it had on staff.

The co-chairs of the inquiry, Labour MPs Rachel Reeves and Frank Field, have once again slammed the board鈥檚 failure to heed advisors鈥� suggestions.

Frank Field, chairman of the work and pensions committee, said: 鈥淲e have heard a lot about the 鈥榮hock鈥� profit warning in July 2017, as well as the board鈥檚 鈥榮urprise鈥� and dismay when they were finally forced into administration on January 15 鈥� at public expense because there was not enough left in the company to pay even for that.

鈥淏ut these papers reveal a wholly deficient corporate culture, studded with low-quality management more interested in meeting targets than obeying rules.

鈥淭hey reveal also pervasive institutional failings of the kind that don鈥檛 appear overnight, long-term failings that management must have been well aware of.鈥�

Rachel Reeves, Field鈥檚 counterpart on the business committee, added: 鈥淭he Carillion directors either took their eye off the ball or they failed to see the warning signs that investors, Carillion staff, and, in this case, EY flagged to them.

鈥淒irectors didn鈥檛 just drop the ball once, they made a habit of it, giving every indication that it was the long-term failings in the management and corporate governance at Carillion which finally sank the company.鈥�

The inquiry has also released minutes from the August board meeting, which showed Carillion leaders were questioning the contractor鈥檚 choice of projects.

The Midlands Metropolitan and Royal Liverpool hospital jobs were highlighted by interim chief executive Keith Cochrane as projects the firm had not tackled in the right way.

Cochrane said the contract for the Royal Liverpool Hospital job, which was agreed in 2014, was 鈥渟igned up too quickly in order to get cash in鈥�, while the Midlands Metropolitan Hospital suffered from rushed mobilisation.