Thursday, 4 May 2017

KPMG facing audit probe after Rolls-Royce bribery settlement



KPMG is facing an investigation by regulators over its auditing of Rolls-Royce's accounts after the engine maker paid £671m to settle bribery and corruption claims.
 
The Financial Reporting Council (FRC) said it had commenced a probe into the accountancy giant's handling of Rolls-Royce financial statements over a period from 2010 to 2013.


It said the decision follows the announcement of a settlement between Rolls and the Serious Fraud Office (SFO) relating to "offences including conspiracy to corrupt and a failure to prevent bribery".


The FRC has wide-ranging powers including being able to issue bans and fines if it decides to do so following an investigation.


Rolls-Royce logo at its aerospace engineering and development site in Bristol


Rolls-Royce disclosed in January that it had agreed settlements with UK, US and Brazilian authorities over bribery and corruption claims.
 
 
They included a record £497m payment to Britain's SFO.


Details were laid out at a court hearing, with a network of bribes going back a quarter of a century in seven countries.


KPMG said it would cooperate fully with the FRC's investigation.


The firm said: "We are confident in the quality of all the audit work we have completed for Rolls-Royce, including the 2010-2013 period the FRC is considering."




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