Financial Reporting Council issues KPMG with disciplinary formal complaint

The FRC said on Wednesday that the complaint alleges misconduct against KPMG and several individuals regarding the provision of allegedly false and misleading information and/or documents in connection with the watchdog's inspections of two audits carried out by the professional services giant - Carillion's 2016 financial statements and Regenersis' 2013-14 financial statements.

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

The FRC stated that a disciplinary tribunal had been convened to hear the formal complaint and determine whether or not the respondents had committed Misconduct, with a hearing for the matter scheduled to commence on 10 January 2022.