Accountant KPMG fined £875,000 for bungled 2016 Luceco audit
Accountant KPMG fined £875,000 for failed 2016 audit of lighting manufacturer Luceco
KPMG has been fined for tampering with an audit.
The accountant must pay £875,000 for work he did for lighting manufacturer Luceco for 2016.
“The breaches included errors in the design and implementation of audit procedures, failure to adequately review and critically evaluate audit evidence obtained, failure to document audit work, and failure to apply professional skepticism by respondents,” the Financial Reporting said. Council, the industry watchdog.
Messed up audit: KPMG must pay £875,000 for work it did for lighting manufacturer Luceco for 2016
Violations were considered more serious because KPMG and its accountant for Luceco, Stuart Smith, were aware of inventory cost errors in the previous year.
Smith, who no longer works at KPMG, was fined £50,000.
Last year, KPMG was fined £14.4 million for deliberately misleading the regulator during its audits of collapsed outsourcer Carillion and software company Regenersis.
Smith also admitted misconduct during a random check at another audit and was fined £150,000 and banned from practicing as an accountant for three years.