KPMG fined US$6 million in Britain over audit of Quindell

KPMG fined US$6 million in Britain over audit of Quindell

Britain's accounting watchdog fined auditor KPMG 4.5 million pounds (US$6 million) on Monday for failings in its audit of Quindell Plc, after the legal services firm twice restated its accounts leading to heavy losses.

The logo of KPMG, a professional service company is pictured during the Viva Tech start-up and tech
FILE PHOTO: The logo of KPMG, a professional service company is pictured during the Viva Tech start-up and technology summit in Paris, France, May 25, 2018. REUTERS/Charles Platiau

LONDON: Britain's accounting watchdog fined auditor KPMG 4.5 million pounds (US$6 million) on Monday for failings in its audit of Quindell Plc, after the legal services firm twice restated its accounts leading to heavy losses.

KPMG and accountant William Smith, who was fined 120,000 pounds, both failed to ensure that Quindell's financial statements for 2013 and 2014 were free from material mis-statement, the Financial Reporting Council (FRC) said.

Once close to being one of Britain's blue chip financial firms, the AIM-listed Quindell saw its market value collapse in 2015 after regulators launched probes into its financial accounts.

KPMG's fine was discounted to 3.1 million pounds and Smith's to 84,000 pounds because they chose to settle the case, the FRC said.

(Reporting by Lawrence White; Editing by Adrian Croft)

Source: Reuters

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