Britain watchdog fines KPMG £3.2m for failures in Quindell audit
London — Britain’s accounting watchdog fined KPMG £3.2m on Monday for failings in its audit of Quindell after the legal services firm twice restated its accounts, leading to heavy losses. KPMG and its employee William Smith, who was fined £84,000, both failed to ensure that Quindell’s financial statements for 2013 and 2014 were free from material misstatement, the Financial Reporting Council (FRC) said. In a statement released on Monday, KPMG issued an apology for failing to press Quindell’s management harder over the company’s accounts. "We accept the FRC’s findings that in two specific areas of the audit our challenge for the year ended 31 December 2013 should have gone further," a spokesman for KPMG said. The fine in Britain comes as the global network of accounting firms that make up KPMG is under pressure. It is facing an inquiry in Britain over its audit of failed outsourcer Carillion and scrutiny of its South African arm’s work for a company owned by the Gupta family. The big...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.