KPMG’s failings led to Carillion’s collapse, High Court lawsuit says November 28, 2022 KPMG’s incompetence in its audits of Carillion played a core part in the construction giant’s 2018 collapse, Carillion’s liquidators have said, as part of a £1.3bn lawsuit against the Big Four accounting firm. KPMG’s 2016 audit of Carillion lulled the construction firm’s board into a false sense of security that saw the firm make a [...]
FRC fines hit record highs as watchdog sends ‘clear message’ to UK’s audit sector November 14, 2022 The UK’s Financial Reporting Council (FRC) fined auditors a record £33.3m in the year running up to 30 September 2022, new figures from Thomson Reuters Confirmation shows. The record high sum marks a 77 per cent increase on the £18.7m fines – after discounts and adjustments – handed out in the previous year. The [...]
UK’s new government should simply ‘get on’ with audit reform, letter to Rishi Sunak says November 4, 2022 The UK’s new government should simply “get on” with plans to overhaul the audit sector, to ensure the long-term stability and resilience of Britain’s economy, the head of one of the country’s largest accountancy sector trade bodies has said. In three separate letters to prime minister Rishi Sunak, business secretary Grant Shapps and chancellor [...]
Junior KPMG auditor ‘should have questioned’ manager’s instructions, tribunal says September 27, 2022 A 25-year-old junior KPMG auditor, who copied meeting minutes into a document as part of a scheme to deceive the UK’s Financial Reporting Council (FRC), “should have questioned” his manager’s instructions, a disciplinary tribunal has said. Junior accountant Pratik Paw, who was asked to forge documents by his superiors during an FRC inspection of KPMG’s [...]
Liz Truss urged to ‘remain committed’ to audit reform September 26, 2022 One of the UK’s largest audit sector trade bodies has called on the UK’s new government to set out a “clear timetable” for its plans to overhaul the UK’s audit sector in claiming audit reform will play a vital role in securing long-term economic growth. Writing to UK prime minister Liz Truss, business secretary [...]
Sanjeev Gupta’s auditor King & King quit over lack of evidence September 21, 2022 The tiny firm that audits the accounts of Sanjeev Gupta’s steelmaking empire has said it resigned from auditing four of the magnate’s companies due to being unable to complete its audits because a “lack of sufficient information.” In a letter filed to Companies House, King & King said it had resigned as auditor four of [...]
Auditor to Sanjeev Gupta’s metals empires cuts ties to at least two key firms September 15, 2022 The little-known firm responsible for audits the accounts of Sanjeev Gupta’s metals empire has resigned from at least two of the embattled magnate’s core firms, following the launch of a probe in May. Two-office accounting firm King & King has resigned as auditor from Liberty Specialty Steels and Liberty Steel Dalzell, Companies House filings show. [...]
Audit watchdog’s Birmingham staff relocation plans still to be decided September 7, 2022 Ministers have not yet come to a decision as to whether staff at the Financial Reporting Council (FRC) will be asked to relocate to Birmingham following the launch of the UK’s new audit watchdog, City A.M. understands. Staff were told that Birmingham had been picked as the home of the UK’s new Audit, Reporting Governance [...]
Audit watchdog’s move to Birmingham could spark staff exodus, industry experts warn September 6, 2022 The government’s decision to pick Birmingham as the future home for the UK’s new audit watchdog could see an exodus of talent from the regulator it is set to replace, industry experts have warned. City A.M. reported yesterday that ministers had picked the UK’s second largest city, Birmingham, as the home of the soon-to-be-launched Audit, [...]
Birmingham picked as home of UK’s new audit watchdog September 5, 2022 MINISTERS have chosen Birmingham as the home of the UK’s new audit watchdog, in a move that risks an internal backlash at the supervisory body it is set to replace. City A.M. understands the soon-to-be launched Audit, Reporting and Governance Authority (ARGA) watchdog will be headquartered in Britain’s second largest city, Birmingham. The new regulator [...]