KPMG In Trouble Over Rolls-Royce Auditing

<h4>KPMG In Trouble Over Rolls-Royce Auditing<&sol;h4>&NewLine;<p>Information available to<strong><a href&equals;"https&colon;&sol;&sol;openlife&period;ng&sol;"> OpenLife Nigeria<&sol;a><&sol;strong> indicates that Britain&&num;8217&semi;s accounting watchdog has fined KPMG 3&period;3 million pounds &lpar;&dollar;4&period;16 million&rpar; over the company&&num;8217&semi;s audit of aero engine maker Rolls-Royce &lpar;RR&period;L&rpar; more than a decade ago&period;<br &sol;>&NewLine;This wa made known on Tuesday&period;<br &sol;>&NewLine;According to the information&comma; the fine relates to payments made by Rolls-Royce to agents in India and is the latest in a string of penalties imposed on KPMG&comma; one of the world&&num;8217&semi;s &&num;8220&semi;Big Four&&num;8221&semi; accountants&comma; over its audit of the aero engine group&period;<br &sol;>&NewLine;The Financial Reporting Council &lpar;FRC&rpar; said it had initially imposed a fine of 4&period;5 million pounds on KPMG over the payments to agents in India but reduced that to 3&period;3 million pounds after admission of failures by KPMG&period;<br &sol;>&NewLine;Rolls-Royce was fined almost 500 million pounds by Britain&&num;8217&semi;s Serious <a href&equals;"https&colon;&sol;&sol;punchng&period;com&sol;">Fraud Office<&sol;a> in 2017 over the payments to agents in India&comma; under a Deferred Prosecution Agreement&period;<br &sol;>&NewLine;The FRC said it fined Anthony Sykes&comma; KPMG&&num;8217&semi;s audit partner in the Rolls-Royce audit&comma; 150&comma;000 pounds&comma; reduced to 112&comma;500 pounds for his admissions of failures&period;<br &sol;>&NewLine;&&num;8220&semi;Allegations of bribery and malpractice through the use of intermediaries and &OpenCurlyQuote;advisers’ in the defence field were prominent at the time of the audit&comma;&&num;8221&semi; the FRC said&period;<br &sol;>&NewLine;KPMG will also have to pay for an external review of its policies on how it audits a company&&num;8217&semi;s compliance with laws and regulations&period;<br &sol;>&NewLine;Jon Holt&comma; KPMG&&num;8217&semi;s UK chief executive&comma; said he was pleased to have concluded this &&num;8220&semi;historic matter&&num;8221&semi; and was sorry that parts of the audit did not meet the professional standards required&period;<br &sol;>&NewLine;&&num;8220&semi;In addition to resolving legacy cases&comma; we are also investing significantly in training&comma; controls and technology to improve quality and resilience in our audit practice&comma;&&num;8221&semi; Holt said&period;<br &sol;>&NewLine;The FRC last week asked an independent tribunal to endorse a 14&period;4 million pound fine for KPMG after the auditor admitted it misled the watchdog during spot checks on audits of construction group Carillion and software firm Regenersis&period; read more<br &sol;>&NewLine;Over the past year KPMG has also received fines for its work with bed maker Silentnight&comma; and audits of convenience store chain Conviviality and Revolution Bars read more<br &sol;>&NewLine;The FRC is separately investigating KPMG&&num;8217&semi;s audit of Carillion&period;<br &sol;>&NewLine;&lpar;&dollar;1 &equals; 0&period;7942 pounds&rpar;<br &sol;>&NewLine;<strong>Source&colon; Reuters<&sol;strong><&sol;p>&NewLine;