UK’s accounting regulator imposed a £3.2 mln or $4.3 mln fine on KPMG today for Quindell company audit shortcomings, following double restatement of accounts causing huge losses.
KPMG as a firm and William Smith employed at the company and fined £84,000, both were unable to make sure that Quindell’s 2013 and 2014 financial statements were devoid of material misstatement, said the Financial Reporting Council.
Today’s statement by KPMG said that it apologized for not exerting more pressure on Quindell in relation to the firm’s accounts. The company recognizes the Council’s conclusions that in two certain segments of the audit, the challenge terminated in the last day of 2013 should have proceeded, KPMG’s spokesman said.
The UK fine takes place when the international net of accounting companies comprising KPMG is pressured. There are two inquiries in the firm’s work – in Britain linked to the audit of bankrupt Carillion, and in South Africa tied to the case with Gupta family’s enterprise.
KPMG and other three largest accounting companies are called on by UK policy makers to split into smaller businesses as officials suppose that the dominance in the market leads to lack of commitment to clients’ claims.