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KPMG faces fine over Rolls-Royce audit - report

By Frank Prenesti

Date: Monday 23 May 2022

(Sharecast News) - Scandal-hit auditing firm KPMG is reportedly about to be slapped with a another fine over the quality of its past work on Rolls-Royce.
Sky News reported, citing an unnamed source, that the Financial Reporting Council, the accounting industry watchdog, has almost finished its investigation into KPMG's auditing of the aircraft-engine maker, with a fine of up to £4.5m in the offing.

KPMG was Rolls' auditor for 27 years but lost the job soon after the settlement in 2017 of bribery and corruption claims against the engineer that spanned five continents and three decades.

Those settlements with the Serious Fraud Office and the US Department of Justice cost the company a total of £670m in fines.

KPMG was excoriated by the FRC and fined £14m over the collapse of disgraced building firm Carillion. Reports said KPMG has been fined £48m by regulators over the past five years.

This year alone it has been censured and fined for its work on Revolution Bars and Conviviality, the off-licence chain. It is also under FRC investigation over its auditing of the Eddie Stobart trucking company after the business fell into financial troubles.

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