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- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Neil Hodge2024-01-23T12:55:00
Legal experts are unconvinced record fines against audit firms imposed last year by the U.K.’s corporate governance regulator will necessarily improve audit quality.
While some firms might be tempted to shy away from large companies as audit clients because of the risks involved, thereby affecting competition, others are likely to recognize larger fines are in line with rising fee income and simply a typical risk to doing business.
In its July enforcement review, the Financial Reporting Council (FRC) revealed a record 19 cases were resolved in the year 2022/23, with financial sanctions of 40.5 million pounds (U.S. $51.6 million) imposed. That total included a then-record penalty of £20 million (then-U.S. $24 million) against KPMG for dishonesty regarding its audits of Carillion and Regenersis, a figure surpassed in October when KPMG was assessed a £26.5 million (then-U.S. $32 million) fine, before reductions, for its broader Carillion failings.
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News and analysis for the well-informed compliance or audit exec.
Annual Membership best value
Subscribe now for $365
Our lowest price ($1 per day) for one year.
2024-01-23T12:56:00Z By Kyle Brasseur
The Financial Reporting Council held back on the latest round of updates to the U.K.’s corporate governance code, as the country remains wary of pushing away businesses and investors.
2023-12-19T15:00:00Z By Kyle Brasseur
The U.K. Financial Reporting Council announced it closed its investigation into Big Four firm PwC’s audit work at collapsed real estate investment trust Intu Properties.
2023-12-18T18:57:00Z By Neil Hodge
The U.K. Financial Reporting Council’s long-planned transition to become the Audit, Reporting and Governance Authority appears to be taking place no time soon, leading some to question whether the change will happen at all.
2024-07-02T20:35:00Z By Adrianne Appel
Three former executives of Chicago-based Outcome Health, a healthcare technology company, were sentenced for misleading an auditor, clients, lenders, and investors about a scheme to sell $45 million in overbilled advertisements.
2024-07-02T14:42:00Z By Adrianne Appel
A home health company operating in Indiana, Ohio, and Texas agreed to pay nearly $4.5 million to settle allegations it filed false claims by giving sports tickets and other kickbacks to assisted living facilities in exchange for referrals.
2024-07-02T13:50:00Z By Aaron Nicodemus
Crypto-friendly Silvergate Bank will pay a total of $63 million penalties to California and the Federal Reserve Board to settle charges that its anti-money laundering program failed to properly monitor more than $1 trillion worth of customer transactions.
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