A former deputy chief executive of the Care Quality Commission says she was not involved in any decision to delete a critical internal review.
Last week an independent report into the CQC's investigation of the deaths of babies at Furness General Hospital found evidence of a possible cover-up.
But Jill Finney told the BBC that she and two other senior colleagues did not decide to suppress the review.
She said they agreed it "required much further work" before being published.
More than 30 families have now taken legal action against the hospital in relation to baby and maternal deaths and injuries from 2008.
Police are investigating the 2008 death of one baby, Joshua Titcombe, nine days after he was born at Furness General. An inquest ruled Joshua died as a result of natural causes, but staff missed opportunities to save him.
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The CQC had given the hospital - run by Morecambe Bay NHS Trust - a clean bill of health in 2010, but an internal review was eventually ordered by the regulator in 2011 into how the deaths and injuries had gone unnoticed.
'Not satisfactory'That review was not made public - and according to accountants Grant Thornton, was buried because it was too critical of the CQC.
Grant Thornton said it was suppressed following a meeting involving Ms Finney, then chief executive Cynthia Bower and media manager Anna Jefferson in March 2012 with the review's author.
When Finney was asked about the meeting, she told Grant Thornton she could not remember that far back.
But Grant Thornton said they were inclined to believe the delete allegations - made by the author of the internal report Louise Dineley - as she was able to proved a contemporaneous note of the meeting.
The Grant Thornton report said "of the four accounts we were given during the course of the of our enquiries, we find [Dineley's] version the most reliable".
Ms Finney told BBC Radio 4's Today programme: "At that meeting we reviewed the report and the report concluded that the activity that CQC had undertaken at Morecambe Bay was satisfactory.
"It was quite clear on reading the report that it was not satisfactory and CQC should have done more. So at that meeting we agreed that the report required much further work.
"There was not a decision at that meeting to delete that report, nor was there an instruction."
Ms Finney said Grant Thornton had refused to listen to her - or to Ms Bower and Ms Jefferson - when they attempted to put their side of the story.
"We made several representations to Grant Thornton about the accuracy of the way in which they were recording the information, and the way in which they were beginning to treat one allegation as fact.
"In spite of those representations, Grant Thornton did not reply, and did not change the way in which the allegations were presented."
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Ms Bower has said she "gave no instruction to delete" the internal review, but added that as the boss of the healthcare watchdog: "The buck stops with me."
Ms Jefferson, who is still an employee of the CQC, said she "would never have conspired to cover up anything which could have led to a better understanding of what went wrong in the regulation of this hospital".
Health Secretary Jeremy Hunt has said the CQC was "fundamentally flawed" when it was set up four years ago and there should be "very, very serious consequences" for anyone found guilty of a cover-up.
Robert Francis QC, who reported on the Mid-Staffordshire NHS Foundational Trust scandal, said there needed to be a "change in attitude" at the CQC.
But the leader of the British Medical Association, Dr Mark Porter, said changes already made to the CQC should be allowed to bed in and ministers should resist the temptation to step in, despite the current crisis.
Dr Porter said: "I think it is absolutely not the time to decide we need to reorganise it all from top to bottom again."
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