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KPMG fined £13m over Silentnight sale to private equity firm

Smart Finance

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There is more and more news coming out about bad practices from auditing firms, a quick google search should show you the many scandals there have been. They have constantly been criticised by watchdog for unacceptable work and failing. The big 4, PWC, KPMG, Deloitte and EY have a monopoly on auditing, but KPMG seem to be pathing the way for slipping standards.

KPMG just been fined £13m and ordered to pay more than £2.75m in costs. This falls just short of the UK record which was made by.....Deloitte, Ding, Ding, Ding we have a winner! Deloitte managed to rack up a penalty of £15m over failings to properly audit former FTSE 100 software company Autonomy.

The reason KPMG managed to get hit with such a fine was that they helped HIG to drive Silentnight into insolvency process so the private equity group could acquire the company without the burden of its pension scheme. The pension scheme would have placed a heavy debt of £100m.


There has been sanctions made against KPMG and their former partner, though
i really dont believe they will learn or care.

 
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CleverFox

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Jul 29, 2021
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KPMG being one of the Big 4, has huge corporations as their clients. May be they couldn't handle all of them with their resources, so these mistakes would have happened. Being one of the Big 4 they have to set Gold Standard for the rest of the auditing firms, it's sad to see them making mistakes. Sure they would have their own reasons for that. But in terms of plain accounting it couldn't be accepted.
Come on KPMG, step up and prove your credibility to UK and to rest of the world that you are one of the BIG 4.
 
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Smart Finance

Administrator
Staff member
Moderator
Feb 23, 2021
774
456
4,587
gumroad.com
KPMG being one of the Big 4, has huge corporations as their clients. May be they couldn't handle all of them with their resources, so these mistakes would have happened. Being one of the Big 4 they have to set Gold Standard for the rest of the auditing firms, it's sad to see them making mistakes. Sure they would have their own reasons for that. But in terms of plain accounting it couldn't be accepted.
Come on KPMG, step up and prove your credibility to UK and to rest of the world that you are one of the BIG 4.
I think we have to take into account that these Big 4 firms also benefit of giving their customers an "advantage" and good service (for them) is beneficial. Yes we want to believe they set the gold standard but evidently they really dont