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KPMG accused of supplying ‘false and misleading’ data to FRC
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KPMG accused of supplying ‘false and misleading’ data to FRC

01.09.2021 From our online archive
Data in question refers to one audit in 2016 of defunct contractor Carillion Plc and another in 2014 of Regenersis Plc, the regulator said.
The KPMG offices in Canary Wharfe London
The KPMG offices in Canary Wharfe London
Photo credit: Shutterstock

The UK’s Financial Reporting Council filed a disciplinary complaint against KPMG LLP, a former partner and current and former employees of the accounting firm over past audits of two UK companies.

CKPMG and the charged individuals provided “false and misleading information” and documents to the FRC during its review of two KPMG audits, the regulator said in a statement. One was a 2016 audit of now defunct contractor Carillion Plc and the second a 2014 audit of Regenersis Plc, the regulator said.

KPMG didn’t immediately reply to an email seeking comment.

KPMG is under increasing pressure in the UK where the Big Four firm only early last month was fined  13 million pounds (€15 million) and was severely reprimanded it for its advising work on the sale of Silentnight Holdings Plc to US private equity firm HIG Capital. 

The individuals implicated in Wednesday’s announcement include the engagement partners for the Carillion and Regenersis audits. The complaint doesn’t claim the audits were wrongly done or financial statements were not properly prepared. The 2016 audit of Carillion’s financial statements is being probed in separate investigations.

A Disciplinary Tribunal has been convened to review the case. This hearing is scheduled to start on January 10.

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