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)