- Topics
- Regions
- Events
- Webcasts
- Resources
- CW Exclusives
- Membership
“For tracking litigation, enforcement, and regulatory developments, Compliance Week
should be your prime source.”- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
KPMG fined $1.1M for admitted deficiencies in Luceco audit
By 
Kyle Brasseur2023-04-13T14:01:00
Big Four audit firm KPMG and one of its former directors were disciplined by the U.K. Financial Reporting Council (FRC) regarding eight admitted breaches of relevant requirements in their fiscal year 2016 work at lighting and wiring product distributor Luceco.
KPMG agreed to pay a reduced penalty of 875,000 pounds (U.S. $1.1 million) and launch a full analysis of whether the firm’s current processes are designed to prevent recurrence of the breaches, which related to intercompany transactions and year-end intercompany balances and accuracy of the cost of inventory and year-end inventory balances, according to the FRC’s press release Thursday. The firm avoided a £1.25 million (U.S. $1.57 million) fine after admissions and early disposal.
Stuart Peter James Smith, a former KPMG director who served as engagement partner on the Luceco audit, was fined a reduced £35,000 (U.S. $44,000).
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
News BriefPwC, KPMG fined over audit lapses at Eddie Stobart Logistics
The U.K. Financial Reporting Council separately penalized Big Four audit firms PwC and KPMG for deficiencies in their work at transport company Eddie Stobart Logistics for the financial years ended 2018 and 2017, respectively.
-
News BriefFRC: KPMG audit failings at The Works exacerbated by Covid-19
The U.K. Financial Reporting Council fined Big Four audit firm KPMG approximately £1 million (U.S. $1.2 million) for deficiencies in its work on the 2020 year-end financials of discount retailer TheWorks.co.uk.
-
News BriefFRC probing KPMG audit of Carr’s Group
The U.K. Financial Reporting Council is investigating the work of Big Four firm KPMG during a 2021 audit at agriculture and engineering services provider Carr’s Group.
More from Regulatory Enforcement
-
News BriefFTC sues GM for selling location and behavioral data without drivers' consent
General Motors failed to disclose to customers that it tracked their precise locations and driving behavior and sold the data to third parties, the Federal Trade Commission alleged in a proposed order.
-
News BriefCash App owner Block to pay $175M over fraud caused by lax consumer protection practices
Block, the owner of Cash App and Square, will pay $175 million to settle allegations that its lax consumer protection practices put customers at high risk of fraud, the Consumer Financial Protection Bureau said.
-
News BriefFTC orders Mobilewalla, Gravy Analytics to stop collecting geolocation data without permission
Two large data brokers, Mobilewalla and Gravy Analytics, collected billions of records containing sensitive geolocation and personal data of millions of people, and then sold it without their consent, the Federal Trade Commission said.