11.1 C
London
Tuesday, April 23, 2024
HomeBusinessKPMG Faces Record Fine Over Carillion Audit Failures

KPMG Faces Record Fine Over Carillion Audit Failures

  • KPMG faces record fine
  • Carillion audit lapses
  • Regulatory overhaul in progress

KPMG, one of the “big four” audit firms, is on the verge of incurring a record-breaking fine, expected to range between £20 million and £30 million, following serious lapses in its audit of Carillion, the construction giant that collapsed in 2018, causing massive job losses.

The Financial Reporting Council (FRC) and KPMG have entered the final stages of their discussions, with an official announcement expected in the near future. This significant financial penalty, initially discussed at £25 million to £30 million, will be adjusted downward due to KPMG’s cooperation during the investigation.

It’s worth noting that these figures are subject to potential revisions, but the looming fine marks a significant development in KPMG’s accountability for its role in one of the UK’s most high-profile corporate collapses.

Kpmg faces record fine over carillion audit failures
Kpmg faces record fine over carillion audit failures

The collapse of Carillion triggered widespread criticism of the company’s management and advisors and spurred calls for substantial reforms in the auditing profession. The fallout from this disaster has also seen former board members facing bans and fines.

KPMG already received a substantial fine of £14.4 million from the FRC for misleading during an audit check related to Carillion. Additionally, the firm, along with the Official Receiver, reached an undisclosed settlement for a £1.3 billion claim brought by Carillion’s creditors, alleging audit-related negligence.

While KPMG awaits the FRC’s verdict, the audit sector struggles with unimplemented reforms. The government’s plans include replacing the FRC with the Audit, Reporting and Governance Authority (ARGA), signaling a major transformation in regulatory oversight

RELATED ARTICLES

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Popular

Study says attractive female looks make males more honest

According to one study, the presence of attractive female faces may influence males to exhibit more honest behavior. Male participants in an experiment cheated less frequently when shown an image of an attractive woman, according to researchers. Female participants, on the other hand, exhibited less honesty when confronted with an identical image.

UK owners reunite with 17-day-lost Australian dog

Milo, a Jack Russell Terrier cross, escaped his handler at Melbourne Airport as he prepared to fly home to Swansea. A canine reported missing in Australia for over two weeks has been returned to his owners in the United Kingdom. Jason Whatnall's partner, Nick Rowlands recently brought their dog Milo to Jason's native state of Victoria, Australia.

Top Israeli military intelligence official resigns on 7 Oct

In a letter of resignation, the head of intelligence for the Israeli military admitted blame for the shortcomings that preceded the October 7 attack by Hamas on Israel. According to the Israel Defence Forces (IDF), Major General Aharon Haliva will retire after his successor is selected. In a letter, he admitted that his intelligence division "fell short of the responsibility placed upon us."

Airline delays due to Liverpool airport power outage

A passenger stated they were stranded on the tarmac for nearly three hours while Liverpool John Lennon Airport attempted to resolve a power disruption. Another passenger reported that a "full Ryanair flight" had been delayed at Dublin Airport since 1.30 pm1.30 pm. A power failure at Liverpool John Lennon Airport halted all aircraft, resulting in potential delays, as passengers were advised.

Recent Comments