Editing KPMG (section)

====2023====
In February, KPMG UK confidentially settled the £1.3 billion (US$1.6 billion) lawsuit launched in 2022 by the UK's Official Receiver relating to KPMG's audit of the failed construction firm, Carillion, between 2014 - 2018.<ref>{{Cite news |last=Makortoff |first=Kalyeena |date=February 17, 2023 |title=KPMG settles £1.3bn lawsuit from Carillion creditors over alleged negligence |work=The Guardian |url=https://www.theguardian.com/business/2023/feb/17/kpmg-pays-13bn-to-settle-negligent-auditing-claim-by-carillion-creditors |access-date=March 11, 2023}}</ref>

Also in February, a Disciplinary Tribunal, appointed by the UK's [[Financial Reporting Council]]  and led by Sir Stanley Burnton concluded that members of the audit teams deliberately misled the FRC’s Audit Quality Review (AQR) teams of KPMG’s audits of Carillion plc and Regenersis plc by altering existing documents and by creating entirely new documents during the course of the inspection.  This showed, the Tribunal found, a clear intention to mislead the regulator.<ref>{{Cite web |last=Highley |first=Richard |date=February 7, 2023 |title=The FRC Disciplinary Tribunal's Decision in KPMG - Regenersis/Carillion Its significance for junior accountants and audit firms |url=https://www.lexology.com/library/detail.aspx?g=cd6cbfd7-6012-4e3a-b05f-1dc50b7c1770 |access-date=May 25, 2023 |website=Lexology}}</ref>

In April, KPMG Lower Gulf was ordered by a [[Dubai]] court to pay UAE Dirhams 850 million (~US$231 million) to a group of investors who claim they lost money because of poor-quality audit of its client, [[The Abraaj Group]].<ref>{{Cite news |last=Louch |first=Will |date=April 16, 2023 |title=Dubai court orders KPMG to pay $231mn for Abraaj fund audit failure |work=The Financial Times |url=https://www.ft.com/content/0843cd97-ca9b-4f8e-b54e-0a7c779d0e8d |access-date=April 16, 2023|url-access=subscription}}</ref>

Also in April, KPMG’s Canadian affiliate was sued for Canadian $1.4 billion (~US$1.1 billion) by [[PwC|PriceWaterhouseCoopers]], the Receiver winding down defunct financing firm, [[Bridging Finance Inc.]], for negligently failing to detect and report on misstatements in its financial statements before the firm’s collapse in 2021<ref>{{Cite news |last=Kiladze |first=Tim |date=April 17, 2023 |title=KPMG faces $1.4-billion lawsuit for alleged role in Bridging Finance's collapse |work=The Globe and Mail |url=https://www.theglobeandmail.com/business/article-lawsuit-bridging-finance-kpmg |access-date=May 5, 2023|url-access=subscription}}</ref>

And in April, UK's accounting regulator [[Financial Reporting Council]] fined KPMG's UK affiliate £1 million (Approx. US$1.3 million) for failing to meet audit requirements in case of its client, stationery company [[The Works (retailer)|TheWorks.co.uk plc]]'s 2020 financial statements, particularly its inventory.<ref>{{Cite news |last=O'Dwyer |first=Michael |date=April 26, 2023 |title=KPMG fined £1mn over 'rudimentary' failures in TheWorks audit |work=The Financial Times |url=https://www.ft.com/content/375cbfdf-5c76-4ef6-b474-a487694e5ccb |access-date=May 15, 2023|url-access=subscription}}</ref>

The [[Financial Reporting Council]] fined KPMG's UK affiliate £875,000 in April (Approx. US$1.1 million) for failing to meet audit requirements in case of its client, lighting company Luceco's, 2016 financial statements particularly its inventory cost errors.<ref>{{Cite news |last=Jones |first=Huw |date=April 13, 2023 |title=KPMG fined 875,000 pounds for failures in Luceco audit |work=Reuters |url=https://www.reuters.com/markets/europe/kpmg-fined-875000-pounds-failures-luceco-audit-2023-04-13/ |access-date=May 25, 2023}}</ref>

During May, the US accounting regulator PCAOB released inspection reports regarding KPMG's China affiliate KPMG Huazhen LLP that [[Holding Foreign Companies Accountable Act]] (HFCAA) made possible.  It concluded that it discovered "deficiencies of such significance that PCAOB staff believe the audit firm failed to obtain sufficient appropriate audit evidence to support its work on the public company’s financial statements or internal control over financial reporting".<ref>{{Cite web |last=Williams |first=Erica |date=May 10, 2023 |title=PCAOB Releases 2022 Inspection Reports for Mainland China, Hong Kong Audit Firms |url=https://pcaobus.org/news-events/news-releases/news-release-detail/pcaob-releases-2022-inspection-reports-for-mainland-china-hong-kong-audit-firms |website=Public Company Accounting Oversight Board}}</ref>

During June, the UK accounting regulator [[Financial Reporting Council]] imposed a £877,000 (Approx. US$1.1 million) fine on KPMG's UK affiliate for not satisfying relevant requirements regarding its 2017 audit of the financial statements of logistics company, [[Eddie Stobart Group]].<ref>{{Cite news |last=Aglionby |first=John |date=June 29, 2023 |title=KPMG and PwC fined over Eddie Stobart audits |work=The Financial Times |url=https://www.ft.com/content/462741dc-50c1-4247-8956-d50664c44fcf |access-date=July 19, 2023|url-access=subscription}}</ref>

In July, KPMG Nederland announced that over 100 employees of the Dutch affiliate of KPMG were found to have cheated annually on their exams over past five years and that its director Marc Hogeboom is also stepping down as boss of the accounting arm.<ref>{{Cite news |last=Iacone |first=Amanda |date=July 17, 2023 |title=KPMG Netherlands Cheating Scandal Embroils Top Leaders, Staff |work=Bloomberg Tax |url=https://news.bloombergtax.com/financial-accounting/kpmg-netherlands-cheating-scandal-embroils-top-leaders-staff |access-date=July 19, 2023}}</ref>

In August, KPMG Australia was accused by two whistleblowers of submitting inflated invoices and billing the Australian Dept. of Defence for hours never worked.  KPMG has reportedly charged this department A$1.8 billion (Approx. US$1.2 billion) over past decade.<ref>{{Cite news |last=Grigg |first=Angus |date=August 6, 2023 |title=Consulting firm KPMG overcharged Defence while raking in billions of dollars, whistleblowers say |work=Four Corners, ABC News |url=https://www.abc.net.au/news/2023-08-07/kpmg-consultants-overcharging-defence-four-corners/102644518 |access-date=August 24, 2023}}</ref>

Also in August, the registration authority of the [[Abu Dhabi Global Market]] imposed a AED110,000 (~US$30,000) penalty on KPMG Lower Gulf for “ineffective systems and controls leading to non-compliance with audit requirements”.<ref>{{Cite news |last=Tamo |first=Omar |date=August 31, 2023 |title=Abu Dhabi Regulator Fines KPMG Lower Gulf for Audit Failings |work=BloombergTax |url=https://news.bloombergtax.com/daily-tax-report-international/abu-dhabi-regulator-fines-kpmg-lower-gulf-for-audit-failings |access-date=September 4, 2023}}</ref>

During November, the US accounting regulator PCAOB imposed a fine of US$80,000 on KPMG affiliates in Brazil and Argentina for failing to communicate adequately with their client's audit committees, and a US$500,000 fine on its Japanese affiliate for quality control violations.<ref>{{Cite web |last=PCAOB |date=November 15, 2023 |title=PCAOB Sanctions KPMG AZSA LLC for Quality Control Violations |url=https://pcaobus.org/news-events/news-releases/news-release-detail/pcaob-sanctions-kpmg-azsa-llc-for-quality-control-violations|access-date=January 24, 2024 |website=PCAOB}}</ref>

KPMG were criticised for their audits of three regional banks which collapsed in 2023: [[Signature Bank]], [[First Republic Bank]], and [[Silicon Valley Bank]] (SVB).<ref>{{cite news |last1=Castonguay |first1=Jack |title=Don't Blame KPMG Audits for the Three Regional Bank Breakdowns |url=https://news.bloombergtax.com/tax-insights-and-commentary/dont-blame-kpmg-audits-for-the-three-regional-bank-breakdowns |access-date=14 May 2024 |work=news.bloombergtax.com |language=en}}</ref><ref>{{cite news |title=KPMG Gave SVB, Signature Bank Clean Bill of Health Weeks Before Collapse |url=https://www.wsj.com/articles/kpmg-faces-scrutiny-for-audits-of-svb-and-signature-bank-42dc49dd |access-date=14 May 2024 |work=WSJ |date=March 13, 2023}}</ref>