Regulator closes investigation into KPMG auditing of BAE

The investigation into the conduct of KPMG as an auditor of British Aerospace/BAE is over.

Launched in 2010, the Accountancy and Actuarial Discipline Board (AADB) was investigating the audits and professional services adviced provided during the period 1997 to 2007.

Subsequent investigations have shown that proper assessment of KPMG’s conduct would require consideration of work undertaken in earlier years. Because there is no realistic prospect that a Tribunal will make an adverse finding in respect of a complaint relating to work done so long ago it has been concluded that it is not in the public interest to extend the investigation to the years preceding 1997.

The Financial Reporting Council (FRC) announced the closure of the investigation today.