KPMG 'misled' on Carillion audit: regulator

[LONDON] The UK's accounting regulator on Wednesday accused KPMG of giving it false and misleading information as it probed an audit of collapsed construction group Carillion.

The Financial Reporting Council made a formal complaint against KPMG and said it was convening a disciplinary tribunal early next year.

In Britain, the "Big Four" accountancy giants - KPMG, PwC, EY and Deloitte - have been accused of failing to foresee several high-profile recent bankruptcies, including department store chain BHS, Carillion, and tour operator Thomas Cook, which led to massive job losses.

The UK regulator opened an investigation following Carillion's 2018 collapse, one of the most high-profile recent corporate insolvencies.

It said the misconduct allegation refers to KPMG's provision of "allegedly false and/or misleading information" as the regulator inspected its 2016 audit of Carillion, as well as its audit of IT company Regenersis.

The regulator stressed that the complaint does not allege that the audits themselves were not properly prepared.

KPMG has been heavily criticised for its role overseeing Carillion's accounts.

A disciplinary tribunal is set to hold a hearing on the complaint on January 10, 2022.

AFP