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).
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