The Financial Reporting Council (FRC) has imposed sanctions against KPMG LLP, KPMG Audit Plc, and two former audit partners in relation to their audits of Carillion plc, which went into liquidation in 2018. The sanctions were issued following investigations into the statutory audits and additional audit work conducted on Carillion’s financial statements for the years ending in 2013, 2014, 2015, 2016, and additional audit work in 2017. The findings identified numerous breaches of Relevant Requirements, including failures to gather sufficient appropriate audit evidence, conduct audits with professional skepticism, and respond to indicators of financial inaccuracies. KPMG LLP and Mr. Meehan, a former partner, received significant financial sanctions and non-financial sanctions, including a declaration that the audit reports did not satisfy Relevant Requirements, and a requirement to take remedial action. KPMG Audit Plc and Mr. Turner, a former partner, also received sanctions, including a financial penalty and a declaration regarding the audit report’s failure to meet Relevant Requirements. These breaches were not found to be dishonest, intentional, deliberate, or reckless but had a significant impact on the credibility of audit reports.
The FRC also imposed a total financial penalty of £5,324,365.68 on KPMG LLP, which includes the Executive Counsel’s costs for both investigations. The sanctions aim to ensure that failures on this scale will not recur.
By FCCT Editorial Team
, an independent military force, and allied militias in Sudan raped several dozen women and girls in West Darfur’s capital, El Geneina, and those fleeing to Chad between late April and late June 2023, Human Rights Watch said today. The assailants appear to have targeted people because of their Massalit ethnicity and, in some cases, because they were known activists.){kind=link}