KPMG LLP

• Supported94
  The 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
• Opinion73
  A 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
• Supported91
  A disciplinary tribunal found in July 2022 that KPMG gave false or misleading documents and information to FRC inspectors reviewing its Carillion and Regenersis audits.
  Regulator statement, 25 July 20222 records citedDisclosure

Cases and proceedings

• Executive Counsel to the FRC v. KPMG LLP, KPMG Audit plc and two former partnersFinancial Reporting Council, Audit Enforcement Procedure. Audit. Not published.Stage: Final settlement decisions with admissions.
  • 12 October 2023 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 costs^S1
• Executive Counsel to the FRC v. KPMG LLP and former partner and employeesIndependent Disciplinary Tribunal under the FRC Accountancy Scheme. Audit. Not published.Stage: Final tribunal decision.
  • 25 July 2022 KPMG fined GBP 14.4 million and severely reprimanded for false or misleading information to inspectors^S2
• Official Receiver as liquidator of Carillion plc v. KPMG LLPHigh Court of England and Wales. Civil. Not published.Stage: Settled on confidential terms in February 2023.
  • 20 February 2023 Confidential settlement of the GBP 1.3 billion negligence claim reported^S4

Responses on record

• KPMG UK, 12 October 2023, on The Financial Reporting Council said in October 2023 that KPMG failed to gather sufficient...

  Chief executive Jon Holt called the findings damning and said he was very sorry the failings happened.^S5

Revision history

• 25 October 2026 Profile and 3 assessments first published. Records checked to 25 October 2026.

Source records

1. 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
2. S2Tier A Sanctions against KPMG and others in connection with Regenersis & Carillion auditsFinancial Reporting Council. Regulator press release. 25 July 2022.Supports the tribunal's misconduct finding on false or misleading information to inspectors. It does not judge the audit opinions themselves.Link working, checked 25 October 2026
3. S4Tier C KPMG settles with Carillion liquidator over £1.3bn legal battleConstruction Enquirer. Press report. 20 February 2023.Report by Aaron Morby on the confidential settlement. The date comes from the URL and the amount was not disclosed.Link working, checked 25 October 2026
4. S5Tier C KPMG handed record fine over audit failures in Carillion demiseAccountancy Age. Press report. 12 October 2023.Report by Greg Noble quoting KPMG's chief executive. The record fine description is the publisher's.Link working, checked 25 October 2026
5. S3Tier A CarillionHouse of Commons Business, Energy and Industrial Strategy and Work and Pensions Committees. Commission report. 16 May 2018.Chapter 2 of the joint committee report, on external checks including the auditors. Supports the fee and tenure facts and records the committees' opinions. It is not a legal finding.Link working, checked 25 October 2026