KPMG, the biog four accountant, has been fined £14.4mln by the financial regulator over falsifying information in connection with audits of Carillion and Regenersis.
The Financial Reporting Council announced a raft of sanctions on the auditor and four of its former employees today.
The regulator said it had reduced the auditor’s fine from £20mln to reflect its self-reporting, cooperation and admissions.
These latest sanctions follow the findings of an independent disciplinary tribunal, which concluded at a five-week hearing in January and February 2022 that misconduct had taken place at the firm.
KPMG "admitted its liability" for the acts of all the individuals and that those acts amounted to misconduct, the FRC said.
The regulator reprimanded the auditor and ordered it to appoint an independent reviewer to conduct an assessment of its audit quality policies and procedures.
Four former employees of the firm were banned from the Institute of Chartered Accountants in England and Wales for up to a decade and face fines of up to £250,000.
Elizabeth Barrett, FRC's executive counsel, said: “Misconduct that deliberately undermines the FRC’s ability to monitor and inspect the effectiveness of audits is extremely serious because it obstructs the FRC’s ability to protect the public interest.
“This case underlines the need for all professional accountants, regardless of seniority, to be aware of their individual responsibility to act honestly and with integrity in all areas of their work.”
KPMG agreed to pay £3.95mln towards the executive counsel costs in connection with the investigation and tribunal hearing.