KPMG was fined to violate the rules of independence

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The UK Accounting Regulator has fined the KPMG 690,000 pounds to rely on the work of another company during its audit in the Carr’s Carr’s Carr, in violation of the auditor’s independence rules.

The Financial Reports Council said on Thursday that KPMG should not rely on work by the smaller company because it sold accounting services and other taxes to Carr’s and failed to change its main auditor in the required five -year mark.

The time limit and restrictions imposed on selling other services are designed to ensure that auditors remain independent of the companies that are examined by their accounts.

Carr’s Carr’s independence issues were discovered in London in 2023 after KPMG was replaced by new auditors in Grant Thornton, which delayed the publication of the group’s results for 2022 and suspended its shares for about three months.

The fine follows a set of penalties and fines for KPMG, including its work on the accounts of the collapsed government contractor, which has been fined Register 21 million pounds sterling. FRC said last year KPMG has made “noticeable improvements” in the quality of audits in recent years.

The fine announced on Thursday is related to KPMGIt depends on another company, whose name has not been determined, to verify the accounts of the CARR company in the year until August 2021.

FRC said that the individual responsible for overseeing the subsidiary audit was in the role of more than five years allowed. The maximum to protect the independence of auditors from their customers is designed.

The smaller audit company also sold the tax and Accounting Advice to the same company, and violate the rules that limit the amount of consulting work that the reviewer can do for the customer.

FRC’s achievement of KPMG only. The organizer said that the violations “were not honest, deliberate or reckless.” The KPMG fine was reduced from 1.25 million pounds in appreciation of its cooperation with the investigation, which the organizer said was “exceptional.”

A separate fine of the main KPMG partner in checking, Nick Plumb, was reduced from 70,000 pounds to less than 39,000 pounds.

“We accept that we did not meet the required criteria in this case. We fully cooperated with the investigation of the FRC, and we took therapeutic measures to address the results, and we commit to driving the ongoing improvements in our scrutiny,” said Kath Burnett, KPMG UK.

Bloom refused to comment. Carr did not immediately respond to a request for comment.