AuditorRecord

Financial Reporting Council · United Kingdom

KPMG LLP and KPMG Audit Plc: fine by Financial Reporting Council

Audit or matter: Carillion plc

Decision date12 October 2023
SanctionFine
Amount as stated£18,550,000 (KPMG LLP) and £2,450,000 (KPMG Audit Plc), after a 30% discount from £26,500,000 and £3,500,000, plus investigation costs of £5,324,365.68
StatusFinal
NetworkKPMG

What the regulator found

The FRC said the cases were resolved by Final Settlement Decision Notices and that the 30% discount reflected the firms' co-operation and admissions. For the 2014 to 2016 audits it found insufficient audit evidence, inadequate professional scepticism toward management judgements and seriously deficient going concern work for 2016. For 2013 transactions it found the auditors did not obtain sufficient evidence for their treatment and did not respond adequately to fraud risk. The FRC found the breaches were not dishonest. Both firms also received a severe reprimand. The FRC described the fine on KPMG LLP as "the highest ever imposed by the FRC."1

Status: Final1,2

Sources

  1. Financial Reporting Council, Sanctions against KPMG LLP, KPMG Audit Plc and two former partners (12 October 2023)
  2. Financial Reporting Council, Publication of final settlement decision notices in respect of KPMG and two former partners (9 May 2024)