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Tue September 21 2021

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Carillion auditor faces disciplinary tribunal

1 Sep The Financial Reporting Council (FRC) has convened a disciplinary tribunal to hear a formal complaint against accountancy firm KPMG and one of its former partners relating to Carillion audits.

Carillion collapsed into insolvency on 15th January 2018 with £7bn of liabilities and the loss of thousands of jobs
Carillion collapsed into insolvency on 15th January 2018 with £7bn of liabilities and the loss of thousands of jobs

The complaint alleges misconduct against KPMG and Peter Meehan regarding the provision of allegedly false and misleading information and/or documents to the FRC by KPMG in connection with its inspections of the 2016 Carillion audit.

The complaint is not about the actual auditing work itself – that remains subject to a separate investigation.

Concerns about the information that KPMG was sharing with FRC in its investigations were first raised in 2018. Peter Meehan was suspended by KPMG in January 2019, along with three employees.

KPMG and another partner are also facing a similar but separate FRC misconduct allegation relating to KPMG’s 2014 audit of software firm Regenersis.

The FRC’s investigation was opened in November 2018 after KPMG had self-reported certain matters relating to the review of the 2016 Carillion audit. The scope of the investigation was expanded in July 2019 to include the inspection of the 2014 Regenersis audit after KPMG had self-reported certain matters relating to that inspection.

A disciplinary tribunal has been convened to hear the formal complaint, starting on 10th January 2022.

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MPU
MPU

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