Audit case
Executive Counsel to the FRC v. KPMG LLP, KPMG Audit plc and two former partners
- Authority
- Financial Reporting Council, Audit Enforcement Procedure
- Case number
- Not published
- Filed or opened
- Not published
- Organization
- KPMG LLP
- Current stage
- Final settlement decisions with admissions.
- Outcome
- Sanctions imposed with admissionsS1.
Decisions and steps
- Fines of GBP 18.55 million on KPMG LLP and GBP 2.45 million on KPMG Audit plc after a 30 per cent discount, plus investigation costsS1
Claims this case bears on
- Supported94The Financial Reporting Council said in October 2023 that KPMG failed to gather sufficient appropriate audit evidence in its audits of Carillion's 2014 to 2016 financial statements.Regulator statement, 12 October 20233 records citedAccounting
- Opinion73A May 2018 joint report of two House of Commons committees said KPMG was complicit in Carillion's aggressive accounting judgements.Official report, 16 May 20183 records citedAccounting
Sources
- S1Tier A Sanctions against KPMG LLP, KPMG Audit plc and two former partnersFinancial Reporting Council. Regulator press release. 12 October 2023.Supports the fines, the admitted breaches in the 2013 to 2016 Carillion audits and the finding that some breaches were not dishonest. The full decision documents were not read.Link working, checked 25 October 2026