Financial Reporting Council · United Kingdom
KPMG Audit plc: fine by Financial Reporting Council
Audit or matter: Rolls-Royce Group plc (FY2010 audit)
Decision date24 May 2022
SanctionFine
Amount as stated£4.5 million, reduced to £3,375,000
StatusFinal
NetworkKPMG
What the regulator found
The FRC said KPMG accepted findings that the auditors failed to properly address matters indicating a risk of non-compliance with laws and regulations, concerning payments to agents in India that later formed part of a 2017 Serious Fraud Office deferred prosecution agreement. The FRC cited "serious failures to exercise professional scepticism." Executive Counsel did not assert the financial statements were materially misstated. KPMG also received a severe reprimand and was required to commission an external review.1
Status: Final1
Sources
- Financial Reporting Council, Sanctions against KPMG and Anthony Sykes (24 May 2022)