Basic Search  |  Summaries  |  Advanced Search

Violation Tracker UK Individual Case

Company: KPMG LLP
Current Parent CompanyKPMG
Parent at the Time of the Penalty Announcement: KPMG
Penalty: £227,500
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 LLP and its Chief Operating Officer regarding admitted breaches of the Ethical Standards for Auditors. Following agreement to allegations by KPMG the Tribunal made four findings of Misconduct against KPMG relating to: (1) its failure to require the COO to sell his shares in Cable and Wireless Worldwide PLC, which was at that time an audit client of the firm, upon his appointment as Partner in 2011; (2) the lack of sufficient or appropriate procedures to prevent or identify the failure on the part of the COO to sell the shares; (3) the lack of an appropriate control environment that placed adherence to ethical principles and compliance with Ethical Standards above commercial considerations; and (4) the subsequent appointment of the individual to the role of Chief Operating Officer when less than two years previously he had been in a position to exert significant influence over the financial statements of CWW. In relation to KPMG, the Tribunal imposed a Reprimand and, before discount for admissions, the Tribunal determined a Fine of £350,000 (subsequently adjusted by 35% to £227,500 to reflect KPMG'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)