The British accounting watchdog is suing KPMG for the third year in a row over “unacceptable” bank audits
The UK accounting officer has convicted KPMG for “unacceptable” bank audits for the third year in a row.
The Financial Reporting Council (FRC) said performance on the Big Four bean counter had not improved and that the company was now being “closely monitored”.
KPMG was selected for criticism in the FRC’s annual audit quality review, which also examined the Big Four rivals Deloitte, EY and PwC, as well as the smaller companies Mazars, Grant Thornton and BDO.
“Unacceptable”: The Financial Reporting Council said that performance on the Big Four bean counter had not improved and that the company was now being “closely monitored”.
The report said: “The inspection results at KPMG have not improved, and it is unacceptable that the FRC saw improvements in the audits of banks and similar entities by KPMG for the third year in a row.
The FRC will closely monitor KPMG’s actions to ensure that the results are processed in a timely manner. ‘
KPMG received the worst audit quality rating of any Big Four companies, with only 59 percent of cases falling into the top category.
Cath Burnet, Head of Audit at KPMG UK, said: ‘Audit quality is our number one priority and we will not be satisfied until our results reflect our commitment to audit quality and the efforts we have made to improve it.’