KPMG, the company that provides audit services, is facing new criticism for the quality of its audits of banks, after the British regulator said it was “unacceptable”, for the third year in a row, that the company’s work was not up to the task.
In Portugal, KPMG He was indicted by the Competition, Regulation and Supervision Court, and lost, this time, the case against CMVM for BES audit work. The same case that emerged victorious against Banco de Portugal, a process now before the Supreme Court.
“The results of the inspection of KPMG do not show any improvement and it is unacceptable that the FRC, for the third year in a row, has found new flaws in the audits of banks and entities similar to KPMG,” it stated. Not communicated.
Across the UK’s seven largest audit firms – including Ernst & Young and Deloitte – nearly 30% of all accounts were below average for the year to the end of March, according to the Financial Reporting Board’s annual report. This target is well below the 10% set by the UK regulator. Accounting firms have faced intense scrutiny by regulators and prosecutors for any role they may have played in a series of corporate scandals and meltdowns. The Federal Reserve has opened investigations into the audits of Greensill Capital, a financial technology company that imploded earlier this year, and a bank owned by one of the largest borrowers.
The British regulator said that “given the systemic importance of banks to the UK economy, it will closely monitor KPMG’s actions to ensure that the results are dealt with in a timely manner.” He said that the company has agreed to a set of required improvements, which will be implemented this year.
not hereIn the case CMVM v KPMG, which was sentenced under supervision to a fine of 1 million euros, the auditor finds that the Santarém court reduces the amount of the penalty by less than half – to 450 thousand euros. Of the 63 administrative offenses with which he came to court, in appealing the CMVM’s decision, the judge established a total of 11 penalties, resulting in a legal total of 450 thousand euros.
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