Carillion Liquidators Roast KPMG: “A Competent Auditor Would Have Detected the Misstatements”
The Carillion failure is still working its way through the courts and now KPMG is accused by Carillion’s liquidators of missing multiple red flags, the likes of which should not have been missed had KPMG had any clue what it is doing. So say the liquidators. WSJ: KPMG received £29 million from Carillion without qualifying […]
KPMG UK Somehow Won’t Be Getting a Record Fine From the Financial Reporting Council For Carillion Mess (UPDATE)
[UPDATE] The Queen’s KPMG was finally, officially fined £14.4 million by the Financial Reporting Council earlier this morning for all the stupidity that happened during the 2016 audit of collapsed construction and services company Carillion, as well as for the mistakes that occurred in its 2014 audit of IT software company Regenersis. KPMG UK and […]
KPMG UK’s Piss-Poor Auditing Is Once Again Coming Back to Bite Them In the Ass
As the UK’s audit cops are kicking back and watching KPMGers throw each other under the bus and a former audit partner feign ignorance about documents being forged during a tribunal hearing on the clown show that was the firm’s auditing of Carillion, the Financial Reporting Council decided to give KPMG a small taste of […]
KPMG UK Already Gearing Up For Massive Punishment Over Carillion Audit Failures
“It is of course for the tribunal to reach a conclusion on the allegations as they relate to the individuals concerned. Nevertheless, it is clear to me that misconduct has occurred and that our regulator was misled. The misconduct that this tribunal will hear about over the coming weeks is disturbing and upsetting for me […]
Uh-Oh, This Isn’t Looking Good for KPMG U.K.
From Reuters today: Britain’s accounting regulator said it has delivered its initial report into KPMG’s audit of builder Carillion, an indication that apparent rule breaches have been found. The construction company’s collapse in 2018 angered lawmakers who called on the Competition and Markets Authority to consider breaking up top accountants to increase competition and auditing […]
Big 4 Lawsuits: Wirecard Investors vs. EY, Australian Tax Office vs. PwC, Carillion vs. KPMG
Here’s a round-up of lawsuits filed against Big 4 firms in Germany, Australia, and the United Kingdom. Ernst & Young Sued Over Wirecard as Accounting Woes Add Up [Bloomberg] Wirecard’s longtime auditor EY is being sued just days after the payment processing company’s headquarters were raided as part of a market-manipulation probe. The German lawsuit […]
Big 4 Lawsuits: FDIC vs. EY, Investors vs. Mattel and PwC, Carillion vs. KPMG
Federal regulator sues auditor Ernst & Young for negligence over First NBC collapse [New Orleans Advocate] The FDIC is suing Ernst & Young in the $1 billion failure of First NBC Bank in 2017, alleging that EY missed clear red flags related to several soured loans and failed to raise the alarm to the bank’s […]
KPMG U.K. Chairman Taking Heat for Defending Carillion Audit
An article published today by The Times in which KPMG U.K. Chairman Bill Michael defended the firm’s audit of Carillion is getting some reaction on Twitter—good for the newspaper, bad for Michael and KPMG. The article states: The chairman of KPMG has hit back at MPs in charge of the inquiry into the collapse of […]
Off-Balance Sheet Liabilities: Still Got It!
If you were worried that the heyday of companies using accounting rules to stash gazillions of dollars in debt out of sight was over, you can rest easy, friend. The Wall Street Journal reports on a Moody’s analysis by Trevor Pijper that found that defunct U.K. contractor Carillion used loose rules to keep about half a […]