LONDON (Reuters) – Accounting firm KPMG has been fined 3.5 million pounds ($4.24 million) by Britain’s accounting watchdog for failing to audit client accounts of BNY Mellon bank properly, the latest in a string of penalties on KPMG for poor performance.
The fine will keep the pressure on Britain’s government to come forward with legislation that implements a proposed shake-up of auditing, including a more powerful watchdog.
Financial - Reporting - Council - FRC - Thursday
The Financial Reporting Council (FRC) said on Thursday that in 2011, BNY Mellon held more than a trillion pounds in assets on behalf of its customers, which under “CASS” safekeeping rules must be audited to ensure the assets are being kept safe.
KPMG and Richard Hinton, who signed the client assets report on behalf of KPMG, admitted misconduct, the FRC said.
KPMG - Aspects - Work - Standards - Regulator
KPMG said it regretted that aspects of its work did not meet the standards expected by the regulator. “We are happy to undertake the additional review process outlined by the FRC as part of our drive to improve audit quality,” it said in a statement.
The fine was discounted from 5 million pounds for admission of misconduct. Hinton’s 75,000 pound fine was discounted to 52,500...
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