BreakingKPMG fined by audit watchdog

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KPMG has been fined £5m and "severely reprimanded" over its audit of The Co-operative Bank in 2009.

KPMG partner Andrew Walker has been fined £125,000 and has also been severely reprimanded.

In particular, the Financial Reporting Council (FRC) said the misconduct related to the valuations of loans acquired in the purchase of Britannia Building Society.

The FRC has also ordered that KPMG audits of credit firms for the next three years be subject to a second quality control review.

FRC slaps KPMG's wrists

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More from the Financial Reporting Council.

They found that "warning signs of deterioration" in the reserves of an insurance company called Equity Red Star, were not acted upon by auditors KPMG.

The sanctions include:

  • A £6m fine for KPMG, which has agreed to an internal review
  • A fine of £100,000 for partner Mark Taylor
  • A fine of £100,000 for former partner Anthony Hulse
  • A 2-year suspension from the Chartered Institute of Management Accountants for in-house accountant Douglas Morgan

KPMG plans 400 jobs at new hub in Glasgow

KPMG sign

Accountancy firm KPMG has announced plans to create up to 400 jobs over the next three years in Glasgow.

The posts will be based at KPMG's new managed services hub - its second in the UK.

The company said 200 jobs would be created in the short term, with 50 already in place and a further 150 starting in June.

Up to 200 more jobs are expected as it increases operations in Scotland.

Roles will include data gatherers, analysts and managers.