Professional services firm KPMG has played a pivotal role making 2021-22 a record year in terms of the level of fines and sanctions issued by the Financial Reporting Council (FRC) to firms of accountants. Total fines for the year amounted to £46.5million, of which over half related to KPMG. Fines in the previous 12 months amounted to some £42m.

Lowlights of the 201-22 year include:

Fine £14.4m: how KPMG's auditors resorted to fraud to try and cover up their errors in the Regenersis and Carillion audits:

Fine £13m: how KPMG's corporate restructuring team asset stripped Silentnight to facilitate a cheap sale to the advantage of their hedge fund client.

The ICAEW receives a share of fines levied against ICAEW firms as its income. This is something which may be viewed as unfair to the victims of the audit failures, whilst it is open to shareholders to bring a class action against auditors it is more difficult for other groups, for example, ex-employees to bring a claim. 

External links

Fountain Court: Tribunal-finds-kpmg-auditors-misled-their-regulator-over-carillion-and-regenersis-audits

 


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