Big Four firm KPMG is bracing itself for a potential fine next week after admitting it misled regulators during checks of its audits of collapsed construction giant Carillion and software firm Regenersis.
The accountancy giant is facing a potential fine after reporting findings from an internal investigation to audit watchdog the Financial Reporting Council.
After an initial hearing in January, the FRC said today a hearing on its misconduct complaint against KPMG and its former employees would resume next week on 12th and 13th May in front of a tribunal, Reuters reported.
The firm admitted to misconduct in January, but five former employees of the firm involved in the Carillion and Regenersis audits have contested the misconduct allegations made by the FRC at the January hearing.
It was alleged the employees “forged” and “manufactured” missing documents after questions during spot checks by the FRC, according to Reuters.
The five former employees will hear next week if the allegations against them have been upheld by a tribunal and what sanctions they may face.
It comes as the firm faces down a hefty £1.3bn high court claim for audit negligence case over its failings in the audit of Carillion, which collapsed in January 2018 with £7bn debts, resulting in the loss of 3,000 jobs.
KPMG has been contacted for comment.
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