skip_previous play_arrow skip_next
00:00 00:00
playlist_play chevron_left
  • cover play_arrow

    Rother Radio (128k) Love Local, Love Music!

  • cover play_arrow

    Rother Radio (64K) Love Local, Love Music!

  • cover play_arrow

    Hit Music Radio (128K) More Music Variety!

  • cover play_arrow

    Hit Music Radio (64K) The Best Variety of Hits!

Business News

KPMG inches towards FRC settlement over Carillion collapse


share close

The big four accountancy firm KPMG is inching towards a financial settlement with regulators over its auditing of Carillion, the doomed construction group, in the years before its collapse.

Sky News has learnt that KPMG has responded to the initial investigation report (IIR) handed to it by the Financial Reporting Council (FRC) more than six months ago.

The firm’s response is significant because it marks another staging post towards eventual sanctions over its work on the books of Carillion, which became insolvent in 2018 carrying more than £5bn of debt.

A final settlement is still likely to be several months away.

The FRC is expected to impose a record fine on KPMG for failings related to the Carillion audit.

The street level sign of the KPMG buliding
Image: KPMG, one of the UK’s so-called big four accountancy firms, is expected to face a record FRC penalty

That would mean it exceeding the £15m penalty that Deloitte was hit with last year for its work on Autonomy, the software company whose takeover ultimately sparked a transatlantic extradition battle.

Industry sources anticipate that the FRC could ultimately fine KPMG around £25m over the Carillion scandal, which has been widely cited as one of the catalysts for proposals published on Thursday to overhaul Britain’s audit and corporate governance frameworks.

More from Business

A KPMG UK spokesperson said: “We are co-operating fully with the FRC’s investigation. We have and will continue to respond appropriately to the Initial Investigation Report.”

A separate IIR produced by the watchdog on KPMG’s audit of Carillion in 2013 was delivered to the accountancy firm last month.

The FRC declined to comment on Thursday.

 Sky News

© Sky News 2021

Written by: Rother Radio News

Previous post

World News

‘It takes one to know one’: Putin hits back at Biden’s ‘killer’ assessment

Vladimir Putin has hit back at Joe Biden after the US president said he agreed that his Russian counterpart was a "killer".Mr Putin suggested the US president was accusing him of something he was guilty of himself. He said every country had its own "bloody events" and cited moments in US history such as the killing of Native Americans, the use of the atomic bomb, slavery, and the Black Lives […]


Similar posts

Search Rother Radio

About Us

Rother Radio – Love Local, Love Music! → Discover more