Auditers: can they understand mathematics let alone accounting?

KPMG audited EDDC accounts until recently.

“Accounting watchdog fined KPMG 3.2 million pounds on Monday for failings in its audit of Quindell Plc, after the legal services firm twice restated its accounts leading to heavy losses. …

The fine in Britain comes as the global network of accounting firms that make up KPMG is under pressure. It is facing an inquiry in Britain over its audit of failed outsourcer Carillion and scrutiny of its South African arm’s work for a company owned by the Gupta family.

The ‘big four’ accounting firms, including KPMG, are facing calls to break up into smaller parts from lawmakers in Britain who allege their dominance of the market means they do not sufficiently challenge clients’ claims about their accounts.

THe FRC is also investigating KPMG’s auditing of the collapsed construction and outsourcing firm Carillion.

Once close to being one of Britain’s blue chip financial firms, the AIM-listed Quindell saw its market value collapse in 2015 after regulators launched probes into its financial accounts.

Quindell, which has since been rebranded as Watchstone, is still being probed by Britain’s Serious Fraud Office and the FRC over its business and accounting practises.

KPMG’s fine was discounted from an original 4.5 million pounds and Smith’s from 120,000 pounds because they chose to settle the case, the FRC said.”

http://flip.it/K0.u3P
Source: Reuters

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