AuditorRecord

Financial Reporting Council · United Kingdom

KPMG Audit Plc: fine by Financial Reporting Council

Audit or matter: The Co-operative Bank plc (FY2009 audit)

Decision date8 May 2019
SanctionFine
Amount as stated£5 million, reduced to £4 million, plus £500,000 toward FRC costs
StatusFinal
NetworkKPMG

What the regulator found

The FRC said KPMG admitted Misconduct in its audit of fair value adjustments on commercial loans and on Leek Notes acquired from Britannia Building Society, including not obtaining sufficient appropriate audit evidence and insufficient professional scepticism. KPMG was severely reprimanded and its audits of credit institutions for 2019 to 2021 year ends were made subject to extra internal review reported to the FRC.1

Status: Final1

Sources

  1. Financial Reporting Council, Sanctions in relation to the 2009 audit of The Co-operative Bank plc (8 May 2019)