- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Neil Hodge2022-09-28T11:54:00
The release of the independent tribunal report into the misconduct of KPMG and five of its former employees for falsifying information in the audits of Carillion and Regenersis provides further details about how the work was doctored—but not why.
The report, published Tuesday by the U.K. Financial Reporting Council (FRC), is also meant to spell out how the regulator reaches enforcement decisions and disciplines noncompliance, but the sanctions against the firm compared to its employees seem notably disproportionate.
KPMG self-reported its concerns to the FRC that auditors working on audit quality reviews (AQRs) for Carillion and Regenersis created false minutes and tampered with spreadsheets and lied about it. The firm subsequently admitted misconduct and cooperated with the FRC’s investigation, resulting in its fine being reduced from 20 million pounds to £14.4 million (then-U.S. $17.4 million) when the FRC announced its penalties in July.
THIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.
News and analysis for the well-informed compliance or audit exec. Select an option and click continue.
Annual Membership $499 Value offer
Full price one year membership with auto-renewal.
Membership $599
One-year only, no auto-renewal.
KPMG accepted the conclusions and record penalties levied against it by the U.K. Financial Reporting Council for the “exceptional” level of deficiencies found to have taken place during the Big Four audit firm’s work at collapsed construction company Carillion.
A former risk and compliance officer at National Westminster Bank was awarded nearly £88,000 (U.S. $112,000) after a U.K. employment tribunal found she was unfairly dismissed and discriminated against during her sick leave for colon cancer.
The United Kingdom introduced for debate corporate reporting reforms that would require the country’s largest companies to set out their risk management and resilience strategies as part of required annual reporting.
The biggest Compliance Fails of 2024 show the real-world consequences of noncompliance for the companies that faltered, but also for their customers and their employees.
Former U.S. Deputy Attorney General Larry D. Thompson participated in landmark legal cases, such as the Justice Department’s Enron investigation and the Volkswagen Independent Compliance Monitorship. Now his memoir looks back on his extensive career in compliance, offering profound insights into corporate culture, diversity, ethics, and integrity.
New Compliance Week Editor-In-Chief Ian Sherr shares his thoughts on where compliance is headed as businesses meet the realities of not just following the rules, but staying ahead of the pace of regulatory change at a global scale.
