Basic Search  |  Summaries  |  Advanced SearchPenalty: £162,500
Year: 2015
Date: 3 February, 2015
Offence Group: financial offences
Offence Type: accounting fraud or deficiencies
Violation Description: The Financial Reporting Council published the report of the disciplinary hearing in relation to KPMG Audit Plc following admitted breaches of the Ethical Standards for Auditors. Following agreement to allegations by KPMG Audit the Tribunal made three findings of Misconduct against KPMG Audit relating to: (1) its failure to have sufficient or appropriate procedures in place to identify whether a former partner in KPMG might have been in the chain of command such that his appointment as non-executive director of Pendragon Plc in December 2010 would require KPMG Audit's resignation; (2) its failure to establish a control environment that placed adherence to ethical principles and compliance with Ethical Standards for Auditors above commercial considerations; and (3) the failure to provide the Audit Committee of Pendragon with full written disclosure of relationships that bore on its objectivity and independence together with any safeguards that had been put in place. In relation to KPMG Audit, the Tribunal imposed a Reprimand and, before discount for admissions, the Tribunal determined a Fine of £250,000 (subsequently adjusted by 35% to £162,500 to reflect KPMG Audit's admissions).
Action Type: agency action
Agency: Financial Reporting Council
HQ Country of Parent: Netherlands
Ownership Structure of Parent: privately held
Major Industry of Parent: business services
Specific Industry of Parent: accounting services
Source of Data: (click here)