Editing KPMG (section)

==== 2022 ====
In January, the [[Malaysia]]n government reported that KPMG's local affiliate had agreed to pay a fine of RM 333 million ($111 million) to settle the case filed against it in connection with the [[1Malaysia Development Berhad scandal|1MDB funds scandal]].<ref>{{Cite news|date=January 13, 2022|title=KPMG pays Malaysian government $111 million settlement over 1MDB audit scandal|work=ABC News – Australia|url=https://www.abc.net.au/news/2022-01-13/malaysia-1mdb-kpmg-settlement/100755620}}</ref>

A group of investors in [[Airbus]], the Dutch foundation Stichting Investor Loss Compensation (SILC), filed a lawsuit against Airbus, KPMG and EY in the Hague District Court alleging they suffered damages worth at least  €300 million (US$340 million) as a result of company's misleading publications about the manufacturer’s involvement in and financial settlements involving corruption, bribery, and other forms of fraud.<ref>{{Cite web|date=January 12, 2022|title=Airbus faces €300mn suit alleging company misconduct|url=https://www.ch-aviation.com/portal/news/111486-airbus-faces-300mn-suit-alleging-company-misconduct|access-date=January 16, 2022|website=Ch Aviation Gmbh, Switzerland}}</ref>

UK regulator The [[Financial Reporting Council]] (FRC) fined KPMG £3 million for audit failings at collapsed alcohol retailer [[Conviviality]].<ref>{{Cite news|last=O'Dwyer|first=Michael|date=January 19, 2022|title=Regulator fines KPMG £3m for audit failings at collapsed retailer|work=The Financial Times|url=https://www.ft.com/content/c41f13e9-79cc-4779-bd91-9e77f966f940 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/c41f13e9-79cc-4779-bd91-9e77f966f940 |archive-date=10 December 2022 |url-status=live|access-date=January 19, 2022|url-access=subscription}}</ref>

A settlement agreement between the UK regulator, the [[Financial Reporting Council]] and a KPMG Partner, Stuart Smith, who led the firm’s audit of IT company, Regenersis later renamed as Blancco Technology Group, resulted in a fine of £150,000 after he admitted misleading its inspectors.<ref>{{Cite news|last=O'Dwyer|first=Michael|date=January 18, 2022|title=KPMG auditor fined and banned for misleading watchdog inspectors|work=The Financial Times|url=https://www.ft.com/content/a48c5e7d-0e24-4ffa-a0b8-af49dd24ca1b |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/a48c5e7d-0e24-4ffa-a0b8-af49dd24ca1b |archive-date=10 December 2022|access-date=January 19, 2022|url-access=subscription}}</ref>

During March, British accounting regulator [[Financial Reporting Council]] (FRC) fined KPMG UK £1.3 million for serious failings within their audits of British bar chain, [[Revolution Bars Group]].<ref>{{Cite news |last=Bradley |first=Gerrard |date=March 8, 2022 |title=KPMG fined £1.3 million for 'serious' breaches over Revolution Bars audit |work=The Evening Standard |url=https://www.standard.co.uk/business/business-news/kpmg-fined-serious-breaches-revolution-bars-audit-b986670.html |access-date=April 28, 2022}}</ref>

The US securities regulator, [[Securities Exchange Commission]], announced an investigation into conflicts of interest at auditors, including KPMG's US branch, KPMG LLP.<ref>{{Cite news |last=Michaels |first=Dave |date=March 15, 2022 |title=Big Four Accounting Firms Come Under Regulator's Scrutiny |work=The Wall Street Journal |url=https://www.wsj.com/articles/big-four-accounting-firms-come-under-regulators-scrutiny-11647364574?st=qe59v981j2a9x7u&reflink=desktopwebshare_permalink&mod=article_inline |access-date=May 22, 2022|url-access=subscription}}</ref>

During April, the US accounting regulator, PCAOB fined the former head of KPMG's US audit practice, Scott Marcello, a record US$100,000 for having failed to reasonably supervise senior auditors who engaged in the scheme to improve KPMG’s inspection results.<ref>{{Cite news |last=Maurer |first=Mark |date=April 5, 2022 |title=Fired KPMG Audit Head Fined Over Failure to Supervise Senior Auditors |work=[[The Wall Street Journal]] |url=https://www.wsj.com/articles/fired-kpmg-audit-head-fined-over-failure-to-supervise-senior-auditors-11649193583 |access-date=April 28, 2022}}</ref>

During May, the [[Financial Reporting Council]] confirmed that KPMG would face a £14.4 million (~US$18 million) fine and a severe reprimand over false representations made by KPMG employees to the regulator concerning Carillion. (See 'Carillion audit role' section below).<ref name=Makortoff>{{Cite news |last=Makortoff |first=Kalyeena |date=May 12, 2022 |title=KPMG to be fined £14m for forging documents over Carillion audit |work=The Guardian |url=https://www.theguardian.com/business/2022/may/12/kpmg-fined-frc-audit-carillion?fr=operanews |access-date=May 13, 2022}}</ref>

In May, The Times reported that FRC was close to finishing its investigation, into KPMG UK's audit of the financial statements of Rolls-Royce plc for year ended December 2010; the investigation was begun in 2017 and the FRC may fine KPMG UK up to £4.5 million (~US$5.6 million) for questionable audit practices.<ref>{{Cite news |last=Lea |first=Robert |date=May 23, 2022 |title=KPMG faces fine over Rolls-Royce audit |work=[[The Times]] |url=https://www.thetimes.com/business-money/companies/article/kpmg-faces-fine-over-rolls-royce-audit-qt0zq6nw2 |access-date=May 23, 2022 |url-access=subscription}}</ref>

In August, PCAOB which reviews audit procedures of foreign firms that audit US-listed entities, fined KPMG South Korea US$500,000 for failing to have proper procedures in place to prevent its auditors from doctoring work papers.  It also fined two of its partners and banned them from working for a PCAOB registered audit firm for three years, as they were found to have improperly altered documents and violated auditing standards during the Big Four firm’s 2018 audit of the Korean business of an unnamed US-listed company.<ref>{{Cite news |last=O'Dwyer |first=Michael |date=17 August 2022 |title=KPMG Korea fined over auditors' misleading of US regulator |work=The Financial Times |url=https://www.ft.com/content/76eadd69-af90-4328-b34b-c779ce35ba97 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/76eadd69-af90-4328-b34b-c779ce35ba97 |archive-date=10 December 2022 |url-access=subscription |url-status=live |access-date=17 August 2022}}</ref>

In September, a lawsuit was filed in the Hong Kong High Court which accused KPMG of "appalling" audit work that allowed a Chinese medical technology company, [[China Medical Technologies]], to commit a US$400 million accounting fraud, and which sought up to US$830 million in damages.<ref>{{Cite news |last=Kinder |first=Tabby |date=5 September 2022 |title=KPMG sued for $830mn over 'appalling' Chinese audit |work=The Financial Times |url=https://www.ft.com/content/07af027a-a1ed-4847-bcfc-263ce9b48a03 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/07af027a-a1ed-4847-bcfc-263ce9b48a03 |archive-date=10 December 2022 |access-date=5 September 2022|url-access=subscription}}</ref>

In October, Dubai Emirate's financial regulator, [[Dubai Financial Services Authority]] handed provisional fines of US$2 million to KPMG's UAE affiliate (US$1.5 million) and one of its audit employees, Milind Navalkar, (US$0.5 million) for failing to follow international audit standards in the audit of the failed Dubai-based private equity firm, [[The Abraaj Group]].<ref>{{Cite news |last=Kerr |first=Simeon |date=October 3, 2022 |title=Dubai hands out $2mn fine for KPMG's Abraaj audits |work=The Financial Times |url=https://www.ft.com/content/06825678-8fc6-4853-9152-3e0e3f3852b6 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/06825678-8fc6-4853-9152-3e0e3f3852b6 |archive-date=10 December 2022 |url-status=live |access-date=October 3, 2022|url-access=subscription}}</ref>

Also, KPMG affiliate - KPMG Lower Gulf's CEO, Nader Haffar, quit consequent to a tumultuous year filled with accusations of nepotism, cronyism and partner discontent.  This was a month after Nader had sent a letter to clients in the UAE and Oman in which the firm’s 30 partners said that they remained united.<ref>{{Cite news |last=O'Dwyer |first=Michael |date=October 12, 2022 |title=KPMG Lower Gulf head quits after months of turmoil |work=The Financial Times |url=https://www.ft.com/content/19fede69-7d1c-44b6-a519-d63b197a98bd |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/19fede69-7d1c-44b6-a519-d63b197a98bd |archive-date=10 December 2022 |url-status=live |access-date=October 22, 2022|url-access=subscription}}</ref>

And, US accounting regulator PCAOB fined KPMG's Italian, Dutch and Canadian affiliates approx. US$275,000 for concealing the outsourcing of some audit work to unregulated firms in Poland and Romania.<ref>{{Cite news |last=Foley |first=Stephen |date=October 20, 2022 |title=KPMG flunks US overseas audit inspections twice as often as rivals |work=The Financial Times |url=https://www.ft.com/content/13562fe7-aa23-43a0-b162-ddfb537295c3 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/13562fe7-aa23-43a0-b162-ddfb537295c3 |archive-date=10 December 2022 |url-status=live |access-date=November 23, 2022|url-access=subscription}}</ref>

During November, KPMG UK agreed to pay £5 million (US$6 million) in settlement of a lawsuit by a former client, insurance software firm Quindell, relating to deficient audit work for Quindell (now known as Watchstone)relating to its 2013 financial statements.<ref>{{Cite news |last=O'Dwyer |first=Michael |date=November 14, 2022 |title=KPMG reaches £5mn settlement over Watchstone audit negligence claim |work=The Financial Times |url=https://www.ft.com/content/d677b67f-e2f0-49f4-a753-786fe05d4c7c |access-date=December 21, 2022|url-access=subscription}}</ref>

The  Abu Dhabi Accountability Authority (ADAA) which monitors Abu Dhabi government-owned and related entities removed KPMG’s Lower Gulf affiliate from its list of authorized auditors that can sign off on financial statements.<ref>{{Cite news |last=O’Dwyer |first=Michael |date=November 18, 2022 |title=KPMG blocked from Abu Dhabi audits as it elects new boss |work=The Financial Times |url=https://www.ft.com/content/28705507-d30b-4e12-baa5-57da21c67400 |access-date=December 29, 2022}}</ref>

In December, US accounting regulator PCAOB announced that its inspectors discovered that hundreds of KPMG employees in UK and Colombia affiliates cheated on their compliance exams.  In addition, inspectors also discovered document alterations to deceive inspectors in KPMG's Colombia affiliate, and blank audit papers signed by an KPMG affiliate audit partner in India.  KPMG LLP has agreed to pay US$7.7 million in fines.  This follows a US$50 million fine in 2019 where KPMG employees were using data stolen from PCAOB to identify which audits would be reviewed.<ref>{{Cite news |last=Foley |first=Stephen |date=December 6, 2022 |title=KPMG staff cheated on professional tests, US regulator says |work=The Financial Times |url=https://www.ft.com/content/48931bc2-c1de-4b9f-8dcc-3d398d50354e |access-date=December 21, 2022|url-access=subscription}}</ref>