Editing KPMG (section)

===Lawsuits, fines by year===
==== 2003 ====
KPMG agreed to pay $125 million and $75 million to settle lawsuits stemming from the firm's audits of [[Rite Aid]] and Oxford Health Plans Inc., respectively.<ref>{{cite web |url=http://articles.baltimoresun.com/2003-03-11/business/0303110155_1_kpmg-llp-rite-aid-oxford |title=China headcount to overtake UK at top firms |work=[[The Baltimore Sun]] |date=11 March 2003 |access-date=5 September 2014 |archive-date=5 September 2014 |archive-url=https://web.archive.org/web/20140905121526/http://articles.baltimoresun.com/2003-03-11/business/0303110155_1_kpmg-llp-rite-aid-oxford |url-status=dead }}</ref>

==== 2004 ====
KPMG agreed to pay $115 million to settle lawsuits stemming from the collapse of software company [[Lernout & Hauspie]] Speech Products NV.<ref>{{cite magazine |first=Stephen |last=Taub |url=http://www.cfo.com/article.cfm/3282683 |title=KPMG Pays $115 Million to Settle Suit |magazine=[[CFO (magazine)|CFO]] |date=12 October 2004 |access-date=5 September 2014 |archive-url=https://web.archive.org/web/20130703210217/http://www.cfo.com/article.cfm/3282683 |archive-date=3 July 2013 |url-status=dead }}</ref><ref>{{cite web|author=Margaret Cronin Fisk | url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aAJ5X5cK2Z78 |title=KPMG to Pay $115 Mln to Settle Lernout & Hauspie Suit |work=[[Bloomberg News|Bloomberg]] |date=7 October 2004 |access-date=8 September 2014}}</ref>

==== 2005 ====
During August, KPMG LLP admitted to criminal wrongdoing and agreed to pay US$456 million in fines, restitution, and penalties as part of an agreement to defer prosecution of the firm, according to the US Justice Department and the Internal Revenue Service. In addition to the agreement, nine individuals-including six former KPMG partners and the former deputy chairman of the firm were to be criminally prosecuted.  As alleged in a series of charging documents, the fraud relates to the design, marketing, and implementation of fraudulent tax shelters.<ref>{{Cite web|date=August 29, 2005|title=KPMG to Pay $456 Million for Criminal Violations in Relation to Largest-Ever Tax Shelter Fraud Case|url=https://www.justice.gov/archive/opa/pr/2005/August/05_ag_433.html|access-date=January 23, 2022|website=US Department of Justice}}</ref>

==== 2006 ====
American real estate financing firm [[Fannie Mae]] sued KPMG for malpractice for approving years of erroneous [[financial statement]]s.<ref>{{cite news | url=https://www.washingtonpost.com/wp-dyn/content/article/2006/12/12/AR2006121201386.html |title=Fannie Sues KPMG for Approving Bad Numbers |newspaper=[[The Washington Post]] |date=13 December 2006 |first=David S. |last=Hilzenrath |access-date=8 September 2014}}</ref>

==== 2007 ====
In February, KPMG Germany was investigated for ignoring questionable payments in the [[Siemens]] bribery case.<ref>{{cite news|last=Esterl |first=Mike |url=https://online.wsj.com/articles/SB117219374546016790 |title=KPMG Germany's Failure to Spot Siemens Problems Raises Questions |work=[[The Wall Street Journal]] |date=24 February 2007 |access-date=8 September 2014}}</ref> In November 2008, the Siemens Supervisory Board recommended changing auditors from KPMG to Ernst & Young.<ref>{{cite web|url=http://www.easybourse.com/bourse-actualite/marches/siemens-supervisory-board-proposes-ernst-young-as-auditors-570387 |title=Siemens Supervisory Board Proposes Ernst & Young As Auditors |publisher=Easybourse.com |date=10 May 2012 }}{{dead link|date=June 2016|bot=medic}}{{cbignore|bot=medic}}</ref>

In February, KPMG Mauritius was sued by a group of South African pensioners who lost millions when investing in Leaderguard Spot Forex (LSF), a foreign exchange investment scheme backed by KPMG and  Denmark-based [[Saxo Bank]]. The suit against KPMG was just for the portion lost during their involvement.<ref>{{cite news |title=South Africa: Pensioners Sue KPMG Mauritius|url=https://allafrica.com/stories/200710100394.html |work=allafrica.com |access-date=3 August 2022 }}</ref><ref>{{cite news |title=Leaderguard investors to sue KPMG |url=https://www.fanews.co.za/article/people-and-companies/12/news/1163/leaderguard-investors-to-sue-kpmg/6716 |work=www.fanews.co.za |access-date=3 August 2022 }}</ref>

==== 2008 ====
In March, KPMG was accused of enabling "improper and imprudent practices" at [[New Century Financial]], a failed mortgage company,<ref>{{cite news | url=https://www.nytimes.com/2008/03/26/business/26cnd-account.html?_r=1&hp |title=Report Assails Auditor for Work at Failed Home Lender |work=[[The New York Times]] |date=26 March 2008 |first=Vikas |last=Bajaj |access-date=8 September 2014}}</ref> and KPMG agreed to pay $80 million to settle suits from [[Xerox]] shareholders over manipulated earnings reports.<ref>{{cite web|url=https://online.wsj.com/news/articles/SB120664919040069445 |title=Xerox, KPMG Settle Shareholder Suit |work=[[The Wall Street Journal]] |date=28 March 2008 |access-date=8 September 2014 }}</ref>

In December, it was announced that two of [[Tremont Group]]'s Rye Select funds, audited by KPMG, had $2.37 billion invested with the [[Bernard Madoff|Madoff]] "[[Ponzi scheme]]".<ref>{{cite web|last=Mackintosh |first=James |url=http://www.ft.com/cms/s/0/e8294d3c-ccef-11dd-9905-000077b07658.html |title=Accounting firms drawn into Madoff scandal |work=[[Financial Times]] |date=18 December 2008 |archive-url=https://archive.today/20141207/http://www.ft.com/cms/s/0/e8294d3c-ccef-11dd-9905-000077b07658.html |archive-date=7 December 2014 |url-status=dead}}</ref> Class action suits were filed.<ref>{{cite web |last=Docket |first=Securities |url=http://www.securitiesdocket.com/2008/12/23/madoff-related-class-action-filed-in-sdny-against-tremont-group-kpmg-others/ |title=Madoff-related class action filed in SDNY against Tremont Group, KPMG, others |publisher=Securities Docket |date=20 February 2009 |access-date=25 December 2008 |archive-url=https://web.archive.org/web/20090317075631/http://www.securitiesdocket.com/2008/12/23/madoff-related-class-action-filed-in-sdny-against-tremont-group-kpmg-others/ |archive-date=17 March 2009 |url-status=dead }}</ref>

In March 2008, KPMG employees in the UK and South Africa were accused of bribing and recruiting employees of commercial structures to collect trade secrets for a monetary reward.<ref>{{cite web|last=Mackintosh |first=James |url=http://www.ft.com/cms/s/0/e8294d3c-ccef-11dd-9905-000077b07658.html |title=Accounting firms drawn into Madoff scandal |work=[[Financial Times]] |date=18 December 2008 |archive-url=https://archive.today/20141207/http://www.ft.com/cms/s/0/e8294d3c-ccef-11dd-9905-000077b07658.html |archive-date=7 December 2014 |url-status=dead}}</ref><ref>{{cite web |last=Docket |first=Securities |url=http://www.securitiesdocket.com/2008/12/23/madoff-related-class-action-filed-in-sdny-against-tremont-group-kpmg-others/ |title=Madoff-related class action filed in SDNY against Tremont Group, KPMG, others |publisher=Securities Docket |date=20 February 2009 |access-date=25 December 2008 |archive-url=https://web.archive.org/web/20090317075631/http://www.securitiesdocket.com/2008/12/23/madoff-related-class-action-filed-in-sdny-against-tremont-group-kpmg-others/ |archive-date=17 March 2009 |url-status=dead }}</ref>

==== 2010 ====
In August, it was reported by the Swedish Financial Supervisory Authority to the Swedish accountancy regulator after HQ Bank was forced into involuntary liquidation after the Financial Supervisory Authority revoked all its licences for breach of banking regulations.<ref>{{cite web |url=http://www.swedishwire.com/component/content/article/1-companies/5977-hq-bank-auditor-kpmg-reported-after-flaws- |title=HQ Bank accountant KPMG reported after flaws |publisher=The Swedish Wire |date=30 August 2010 |access-date=18 November 2010 |archive-url=https://web.archive.org/web/20110716173555/http://www.swedishwire.com/component/content/article/1-companies/5977-hq-bank-auditor-kpmg-reported-after-flaws- |archive-date=16 July 2011 |url-status=dead |df=dmy-all }}</ref>

==== 2011 ====
In August, KPMG conducted due diligence work on [[Hewlett-Packard]]'s $11.1 billion acquisition of the British software company [[Autonomy Corporation|Autonomy]]. In November 2012 HP announced an $8.8 billion write off due to "serious accounting improprieties" committed by Autonomy management prior to the acquisition.<ref>{{cite web |url=http://www.accountancyage.com/aa/news/2226169/kpmg-conducted-due-diligence-of-deloitte-audit-at-autonomy |title=KPMG conducted due diligence of Deloitte audit at Autonomy |work=Accountancy Age |date=20 November 2012 |first=Rachael |last=Singh |access-date=8 September 2014 |archive-url=https://web.archive.org/web/20140908020850/http://www.accountancyage.com/aa/news/2226169/kpmg-conducted-due-diligence-of-deloitte-audit-at-autonomy |archive-date=8 September 2014 |url-status=dead }}</ref><ref>{{cite news |last=Hardy |first=Quentin |url=https://dealbook.nytimes.com/2012/11/20/h-p-takes-big-hit-on-accounting-improprieties-at-autonomy/ |title=Hewlett's Loss: A Folly Unfolds, by the Numbers |work=[[The New York Times]] |date=20 November 2012 |access-date=8 September 2014 |archive-url=https://web.archive.org/web/20140725010737/http://dealbook.nytimes.com/2012/11/20/h-p-takes-big-hit-on-accounting-improprieties-at-autonomy/ |archive-date=25 July 2014 |url-status=dead }}</ref>

According to an independent panel formed to investigate irregular payments made by [[Olympus Corporation|Olympus]] which reported in December, KPMG's affiliate in Japan did not identify fraud at the company.<ref>{{cite news|url=https://www.nytimes.com/2011/12/07/business/global/banks-aided-in-olympus-cover-up-report-finds.html |title=The Culture Was Corrupt at Olympus, Panel Finds |work=[[The New York Times]] |date=6 December 2011 |access-date=8 September 2014}}</ref>

==== 2013 ====
In April, Scott London, a former KPMG LLP partner in charge of KPMG's US Los Angeles-based Pacific Southwest audit practice, admitted passing on stock tips about clients, including [[Herbalife]], [[Skechers]], and other companies, to his friend Bryan Shaw, a California jewelry-store owner.<ref name=gpkpmg>{{cite news|url=http://www.latimes.com/business/la-fi-insider-sentencing-20140603-story.html|title=Bryan Shaw Sentenced to Prison in KPMG Insider Trading Case|newspaper=Los Angeles Times|first=Riley|last=Snyder|date=2 June 2014|access-date=2 May 2018}}</ref> In return Shaw gave London $70,000 as well as gifts that included a $12,000 Rolex watch and concert tickets.<ref name=wsj9>{{cite news|last=Rapoport|first=Michael|title=Guilty Plea in KPMG Case|url=https://online.wsj.com/news/articles/SB10001424127887323826804578467333522974930|newspaper=The Wall Street Journal|access-date=8 September 2014 |date=6 May 2013}}</ref><ref name=gpkpmg/> On 6 May, Shaw agreed to plead guilty to one count of conspiracy to commit [[securities fraud]]. He also agreed to pay around $1.3 million in restitution, and to cooperate with the government as part of a plea deal with federal prosecutors.<ref name=R9>{{cite news|last=Flitter|first=Emily|title=Friend of ex-KPMG auditor pleads guilty in insider case|url=https://www.reuters.com/article/us-kpmg-idUSBRE9450SR20130506|work=Reuters|access-date=8 September 2014|date=6 May 2013|archive-date=6 October 2014|archive-url=https://web.archive.org/web/20141006194258/http://www.reuters.com/article/2013/05/06/us-kpmg-idUSBRE9450SR20130506|url-status=live}}</ref> This scandal led KPMG to resign as auditor for Herbalife and Skechers.<ref>{{cite news|url=https://online.wsj.com/news/articles/SB10001424127887323550604578411812224197182 |title=Trading Case Embroils KPMG |work=[[The Wall Street Journal]] |date=9 April 2013 |access-date=8 September 2014}}</ref>

The Office of Counter-Terrorism and Financial Intelligence of the US Department of the Treasury accused KMPG, Ernst & Young and PwC of collaborating with British intelligence services to provide analytical information on financial transactions and reports of British organizations operating in the United States with contract agreements with government agencies.<ref>{{Cite news |last=Thompson |first=Jennifer |date=May 4, 2017 |title=Accounting watchdog to investigate KPMG over Rolls-Royce audits |work=The Financial Times |url=https://www.ft.com/content/bacca773-1c6f-3714-848a-055d4f286947 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/bacca773-1c6f-3714-848a-055d4f286947 |archive-date=10 December 2022 |url-access=subscription |url-status=live |access-date=May 22, 2022}}</ref>

==== 2015 ====
KPMG was accused by the [[Canada Revenue Agency]] of abetting tax evasion schemes: "The CRA alleges that the KPMG tax structure was in reality a 'sham' that intended to deceive the taxman."<ref>{{cite news|url=http://www.cbc.ca/news/business/kpmg-offshore-sham-deceived-tax-authorities-cra-alleges-1.3209838 |title=KPMG Offshore 'Sham' Deceived Tax Authorities, CRA Alleges |work=cbc.ca |date=10 September 2015 |access-date=11 September 2015}}</ref>

==== 2016 ====
The [[Canada Revenue Agency]] offered an amnesty to KPMG clients caught using an offshore tax-avoidance scheme on the [[Isle of Man]].<ref>{{cite news|url=http://www.cbc.ca/news/business/cra-kpmg-anger-at-secret-deal-1.3479792|title=Secret tax deal for wealthy KPMG clients sparked anger inside Canada Revenue Agency|publisher=CBC News|date=8 March 2016|access-date=9 March 2016}}</ref>

==== 2017 ====
KPMG US terminated five partners in its audit practice, including the head of its audit practice in the US, after an investigation of advanced confidential knowledge of planned audit inspections by its [[Public Company Accounting Oversight Board]] (PCAOB).<ref>{{cite web|last1=Michaels|first1=Dave|last2=Rapoport|first2=Michael|title=KPMG partners fired over ethics breach|url=http://www.marketwatch.com/story/kpmg-partners-fired-over-ethics-breach-2017-04-11|website=MarketWatch.com|date=12 April 2017 |access-date=18 April 2017}}</ref><ref name="Dealbook KPMG fires 6"/> This followed criticism about KPMG's failure to uncover illegal sales practices at [[Wells Fargo]] or potential corruption at [[FIFA]], the governing international body of football.<ref name="Dealbook KPMG fires 6">{{cite news|last1=Bray|first1=Chad|title=KPMG Fires 6 Over Ethics Breach on Audit Warnings|url=https://www.nytimes.com/2017/04/12/business/dealbook/kpmg-public-company-accounting-oversight-board.html?_r=0|access-date=18 April 2017|work=The New York Times|date=12 April 2017}}</ref> It was reported in 2017 that KPMG had the highest number of deficiencies, among the [[Big Four accounting firms|Big Four]], cited by its regulator in the previous two years.<ref>{{cite news|last1=Rapoport|first1=Michael|title=Fired KPMG Audit Head: How Did Scott Marcello Fall From Grace?|work=The Wall Street Journal}}</ref> This includes two annual inspections that were compromised as a result of advanced access to inspection information. In March 2019, David Middendorf and Jeffrey Wada, co-defendants in the scandal, were convicted.<ref>{{Cite news|url=https://www.wsj.com/articles/kpmg-ex-partner-convicted-in-steal-the-exam-scandal-11552340232|title=KPMG Ex-Partner Convicted In 'Steal the Exam' Scandal|last=Rapoport|first=Michael|date=2019-03-11|work=[[The Wall Street Journal]]|access-date=2019-03-31|language=en-US|issn=0099-9660}}</ref>

The UK accounting regulator, Financial Regulation Council (FRC), has opened an investigation into KPMG's audit of the financial statements of British aerospace company, [[Rolls-Royce plc]] for the year ended December 2010.<ref>{{Cite news |last=Thompson |first=Jennifer |date=May 4, 2017 |title=Accounting watchdog to investigate KPMG over Rolls-Royce audits |work=The Financial Times |url=https://www.ft.com/content/bacca773-1c6f-3714-848a-055d4f286947 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/bacca773-1c6f-3714-848a-055d4f286947 |archive-date=10 December 2022 |url-access=subscription |url-status=live |access-date=May 22, 2022}}</ref>

In August, KPMG US paid a $6.2 million fine to the [[US Securities and Exchange Commission]] for inadequacies in its audit of the financial statements of oil and gas company, Miller Energy Resources.<ref>{{cite news|url=https://www.reuters.com/article/kpmg-usa-idUSEMN2I780N|title=KPMG to pay more than $6.2 mln to settle U.S. charges -SEC|work=Reuters|date=15 August 2017|access-date=15 August 2017}}</ref> It also found KPMG guilty of a long list of violations with regard to its audits, including "lack of competence" and "highly unreasonable conduct."<ref>{{cite web|url=https://www.sec.gov/litigation/admin/2017/34-81396.pdf|date=15 August 2017|publisher=SEC|title=KPMG LLP and John Riordan, CPA|access-date=11 May 2023}}</ref>

In November, 91 partners of KPMG Hong Kong faced contempt proceedings in [[Hong Kong High Court]], as [[China Medical Technologies]] (CMED) liquidators investigating a $400 million fraud took action against KPMG with regard to its refusal to honor a February 2016 court order to produce Chinese working papers, correspondence, and records to the liquidators.<ref name=II>Costello, Eugene (20 December 2017). [http://www.internationalinvestment.net/regions/asia/several-kpmg-partners-facing-hong-kong-contempt-proceedings/ "KPMG partners facing Hong Kong contempt proceedings,"] {{Webarchive|url=https://web.archive.org/web/20180124072114/http://www.internationalinvestment.net/regions/asia/several-kpmg-partners-facing-hong-kong-contempt-proceedings/ |date=24 January 2018 }} ''International Investment''.</ref><ref name=autogenerated6>Miller, Matthew (20 December 2017). [https://ca.reuters.com/article/businessNews/idCAKBN1EE0HI-OCABS "Exclusive: KPMG partners face court contempt over China audit,"] {{Webarchive|url=https://web.archive.org/web/20180122001015/https://ca.reuters.com/article/businessNews/idCAKBN1EE0HI-OCABS |date=22 January 2018 }} Reuters.</ref><ref>[http://www.scmp.com/business/investor-relations/article/2125119/kpmg-partners-face-court-contempt-proceedings-hong-kong "KPMG partners face court contempt proceedings in Hong Kong over China audit; The accounting firm has refused to hand over audit papers relating to China Medical Technologies despite a 2016 court order,"<!-- Bot generated title -->] {{Webarchive|url=https://web.archive.org/web/20180122074930/http://www.scmp.com/business/investor-relations/article/2125119/kpmg-partners-face-court-contempt-proceedings-hong-kong |date=22 January 2018 }} ''South China Morning Post'', 20 December 2017.</ref><ref>[https://www.reuters.com/article/china-audit-timeline/timeline-u-s-hk-regulators-struggle-to-get-china-audit-papers-idUSKBN1EE0HT "Timeline: U.S., HK regulators struggle to get China audit papers,"] Reuters, 20 December 2017.</ref><ref>[http://www.thestandard.com.hk/section-news.php?id=190982&sid=2 "Contempt hit looms for KPMG,"] {{Webarchive|url=https://web.archive.org/web/20180123131651/http://www.thestandard.com.hk/section-news.php?id=190982&sid=2 |date=23 January 2018 }} ''The Standard'', 21 December 2017.</ref> The liquidators are asking that 91 defendants be held in [[contempt of court]], which could result in criminal penalties, or weekly fines.<ref name=II/>  KPMG had issued written audit reports for CMED from 2003 to 2008, and was replaced by [[PwC]] Zhong Tian in August 2009.<ref name=autogenerated6 /> "Perhaps locking up 91 KPMG partners over Christmas may spur the firms to find a solution to this problem", said Professor Paul Gillis of [[Peking University]]'s [[Guanghua School of Management]].<ref name=II/>

==== 2018 ====
During July, KPMG has come under criticism for its role in the bankruptcy of Dubai-based private equity firm, [[The Abraaj Group|Abraaj Group]], after it was determined that KPMG Lower Gulf Chairman and Chief Executive Vijay Malhotra's son has worked at Abraaj and an executive named Ashish Dave alternated between stints at KPMG and as Abraaj’s chief financial officer, a job he held twice.<ref>{{Cite news|last=Clark|first=Simon|date=July 3, 2018|title=KPMG Has Close Ties to Troubled Private Equity Firm|work=[[The Wall Street Journal]]|url=https://www.wsj.com/articles/kpmg-was-key-witness-as-abraaj-unraveled-1530610201|access-date=May 5, 2021}}</ref>

Also during July, the UK accounting watchdog, the [[Financial Reporting Council]] (FRC) announced an investigation into KPMG’s work for Conviviality, the British drinks supplier that collapsed into administration during April 2018.<ref>{{Cite news|date=July 3, 2018|title=UK's accounting watchdog investigates KPMG|newspaper=The Irish Times|url=https://www.irishtimes.com/business/retail-and-services/uk-s-accounting-watchdog-investigates-kpmg-1.3552400|access-date=May 12, 2021}}</ref>

Also during July, KPMG paid HK$650 million (US$84 million) to settle legal claims after failing to identify fraud at a Chinese timber company, China Forestry.  The liquidators of China Forestry claimed KPMG was negligent when it failed to detect serious false accounting by some of the company’s top management ahead of its listing in 2009.<ref>{{Cite news|last=Kinder|first=Tabby|date=July 19, 2021|title=KPMG settles legal claims after failing to spot fraud at Chinese group|work=The Financial Times|url=https://www.ft.com/content/40a66ec8-d2a1-47d6-a5df-d4414fe75649 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/40a66ec8-d2a1-47d6-a5df-d4414fe75649 |archive-date=10 December 2022 |url-access=subscription |url-status=live|access-date=January 16, 2022}}</ref>

During August, [[Chile]]'s Comision Para El Mercado Financiero(CMF) sanctioned KPMG Auditores Consultores Limitada (KPMG LLP's local affiliate) 3,000 UF (~$114,000), and Joaquín Lira Herreros, its partner, for offences incurred in the audit made to the financial statements of the Aurus Insignia Fondo de Inversión, managed by Aurus Capital S.A. Admnistradora General de Fondos Management (AGF), corresponding to the year 2014.<ref>{{Cite web|date=August 22, 2018|title=The CMF applies sanction against KPMG Auditors|url=https://www.cmfchile.cl/portal/principal/613/w3-article-26175.html|access-date=January 15, 2022|website=Comision Para El Mercado Financiero}}</ref>

In November, the [[Sultanate of Oman]]'s [[Muscat Securities Market|Capital Market Authority (CMA)]] suspended KPMG from auditing entities regulated by the CMA for a period of one year after discovering major financial and accounting irregularities in the entities' records.<ref>[[Times of Oman]], [https://timesofoman.com/article/426702 CMA suspends firm from auditing regulated entities], retrieved on 14 November 2018. Archived at the [https://web.archive.org/web/20181114133638/https://timesofoman.com/article/426702 Wayback machine]</ref><ref>Gulf Business, [http://gulfbusiness.com/oman-regulator-suspends-kpmg-new-auditing-work-irregularities/ Oman regulator suspends KPMG from new auditing work over "irregularities" – A review by the CMA "established professional negligence on the part of some audit firms"], retrieved on 14 November 2018. Archived at the [https://web.archive.org/web/20181114140029/http://gulfbusiness.com/oman-regulator-suspends-kpmg-new-auditing-work-irregularities/ Wayback machine]</ref><ref name="McCance-15Nov2018">{{cite news |last1=McCance |first1=Danny |title=KPMG suspended in Oman |url=https://economia.icaew.com/news/november-2018/kpmg-suspended-in-oman |archive-url=https://web.archive.org/web/20181116085432/https://economia.icaew.com/news/november-2018/kpmg-suspended-in-oman |url-status=dead |archive-date=16 November 2018 |access-date=15 November 2018 |work=Economia |date=15 November 2018 }}</ref>

In December, KPMG South Africa published an open apology for its participation in various scandals in South Africa, including publishing a misleading report that led to the resignation of the South African Finance Minister, involvement with the [[Gupta family]] who have been implicated in corruption scandal with former President, Jacob Zuma, and acting as the auditor of [[VBS Mutual Bank]] that collapsed due to fraud.  Its top eight staff resigned during 2017 and its workforce shrank from 3,400 to 2,200.<ref>{{Cite news|last=Sguazzin|first=Anthony|date=December 10, 2018|title=KPMG South Africa Apologizes for Scandals, Seeks Second Chance|work=Bloomberg.com|url=https://www.bloomberg.com/news/articles/2018-12-10/kpmg-south-africa-apologizes-for-scandals-seeks-second-chance|access-date=May 5, 2021}}</ref>

==== 2019 ====
KPMG were fined £5 million by the [[Financial Reporting Council]] for misconduct shortly after the takeover of the [[Britannia Building Society]] by [[The Co-operative Bank]], particularly relating to the valuation of Britannia's commercial loans and other liabilities. The takeover led to the near collapse of The Co-operative Bank.<ref name=guardian-20190508>{{cite news |url=https://www.theguardian.com/business/2019/may/08/kpmg-severely-reprimanded-for-audit-failings-at-co-op-bank |title=KPMG 'severely reprimanded' for audit failings at Co-op Bank |last=Kollewe |first=Julia |newspaper=The Guardian |date=8 May 2019 |access-date=8 May 2019}}</ref>

KPMG was fined $50 million by the [[U.S. Securities and Exchange Commission]] for illicit use of PCAOB data and cheating on training exams.<ref name=sec2019-95>{{cite news |url=https://www.sec.gov/news/press-release/2019-95 |title=KPMG Paying $50 Million Penalty for Illicit Use of PCAOB Data and Cheating on Training Exams |date=17 June 2019 |access-date=29 May 2022}}</ref><ref>{{Cite web |last=McKenna |first=Francine |title=The KPMG cheating scandal was much more widespread than originally thought |url=https://www.marketwatch.com/story/the-kpmg-cheating-scandal-was-much-more-widespread-than-originally-thought-2019-06-18 |access-date=2023-05-11 |website=MarketWatch |date=18 June 2019 |language=EN-US}}</ref>

==== 2020 ====
During April, KPMG UK was fined £455,000 and a senior partner, Nicola Quayle, was fined £29,250 by the UK accounting regulator, [[Financial Regulation Council]] for failing to challenge what a client was telling them about certain complex supplier arrangements.<ref>{{Cite web |last=Jones |first=Huw |date=April 2, 2020 |title=KPMG fined 700,000 pounds for failing to challenge client |url=https://www.nasdaq.com/articles/kpmg-fined-700000-pounds-for-failing-to-challenge-client-2020-04-02 |access-date=May 22, 2022 |website=Nasdaq.com}}</ref>

In June, KPMG resigned from the auditor role of British fashion firm Ted Baker plc after the company admitted accounting errors resulting in overstatement of its inventory by up to £58 million.<ref>{{Cite news|date=June 1, 2020|title=KPMG Resigns as Ted Baker Auditor After Accounting Errors|work=Bloomberg|url=https://news.bloombergtax.com/financial-accounting/kpmg-resigns-as-ted-baker-auditor-after-accounting-errors|access-date=May 12, 2021}}</ref>

==== 2021 ====
In February, the liquidators for South African bank, [[VBS Mutual Bank]], sued KPMG for 863.5 million rand (~US$59 million) over its audit opinion on the now defunct bank.<ref>{{Cite web|date=February 24, 2021|title=KPMG Sued in South Africa for $59.3m Over VBS Audit, BD Says|url=https://news.bloombergtax.com/financial-accounting/kpmg-sued-in-south-africa-for-59-3m-over-vbs-audit-bd-says|access-date=February 13, 2022|website=Bloomberg Tax}}</ref>

In March, KPMG US agreed to pay $10 million to settle a 10-year gender discrimination lawsuit in a New York Federal Court that alleged claims by 450 women that its culture was rife with gender discrimination, sexual harassment, and retaliation.<ref>{{Cite web|last=Gurrieri|first=Vin|date=March 31, 2021|title=KPMG Strikes $10M Deal To End Decadelong Sex Bias Suit|url=https://www.law360.com/articles/1370393|access-date=January 16, 2022|website=Law360.com}}</ref>

During May, members of the Canadian Parliament's House of Commons finance committee re-launched a probe into offshore tax evasion by interviewing Lucia Iacovelli, managing partner at KPMG.<ref>{{Cite news|last=Snyder|first=Jesse|date=May 6, 2021|title=Finance committee relaunches probe into offshore tax evasion with questions over Isle of Man fraud|work=The Financial Post|url=https://nationalpost.com/news/parliamentary-committee-relaunches-probe-into-offshore-tax-evasion-with-questions-over-isle-of-man-fraud|access-date=May 20, 2021}}</ref>

KPMG in the UK has been sued for more than £6 million (~€6.9 million, ~US$7.8 million) by property company Mount Anvil which claims it was left with an unexpected tax bill after the firm provided it with negligent advice.<ref>{{Cite news|date=May 9, 2021|title=KPMG in UK sued for £6m by property company Mount Anvil|work=Irish Times|url=https://www.irishtimes.com/business/financial-services/kpmg-in-uk-sued-for-6m-by-property-company-mount-anvil-1.4559694|access-date=February 13, 2022}}</ref>

In July, the UK accounting regulator [[Financial Reporting Council]] (FRC) criticised KPMG for its "unacceptable" failure to meet required standards in its audits of banks for a third year running. Only 61% of KPMG’s audits sampled by the regulator met industry standards.<ref>{{Cite news|last=O’Dwyer|first=Michael|date=July 22, 2021|title=KPMG criticized for 'unacceptable' bank audits by UK regulator|work=The Financial Times|url= https://www.ft.com/content/fedd96fc-780d-4ddb-85c2-6d41dc2025ab |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/fedd96fc-780d-4ddb-85c2-6d41dc2025ab |archive-date=10 December 2022|access-date=July 23, 2021|url-access=subscription}}</ref>

The Government of [[Malaysia]] and the state sovereign fund, [[1MDB]], launched a lawsuit seeking over $5.6 billion in damages from KPMG partners for alleged breaches and negligence linked to a corruption scandal at the fund.<ref>{{Cite news|last=Latiff|first=Rozanna|date=July 9, 2021|title=Malaysia, 1MDB seeking more than $5.6 bln in damages from KPMG partners|work=Reuters|url=https://www.reuters.com/business/finance/kpmg-denies-alleged-breaches-negligence-after-reported-1mdb-lawsuit-2021-07-09/|access-date=November 7, 2021}}</ref>

South Africa's largest asset manager, the Public Investment Corporation (PIC) sued KPMG for 144 million rand (~U$9.5 million) it lost when the VBS Mutual Bank went bankrupt as a result of fraud.  Its claim is centred on the rights issue and a revolving credit facility it participated in at VBS relying on financial statements audited by KPMG and its former senior partner, Sipho Malaba.<ref>{{Cite news|last=Khumalo|first=Kabelo|date=July 5, 2021|title=PIC sues KPMG for R144m as VBS looting saga continues|work=Sunday World South Africa|url=https://sundayworld.co.za/breaking-news/pic-sues-kpmg-for-r144m-as-vbs-looting-saga-continues/|access-date=February 13, 2022}}</ref>

In August, a tribunal convened by the UK regulator, FRC, fined KPMG £13m and ordered it to pay £2.75m in costs. This was because of its serious misconduct in the sale of bed company [[Silentnight]]. The tribunal found that KPMG had helped private equity group [[H.I.G. Capital|H.I.G Capital]] drive Silentnight into an insolvency process, so that HIG could acquire the company without its £100m pension scheme. KPMG was severely reprimanded by the tribunal, and was ordered to appoint an independent reviewer to check a sample of previous cases for similar failings.<ref>{{Cite web|date=21 July 2021|title=KPMG faces record fine over 'conflict of interest' on Silentnight sale|url=https://www.ft.com/content/e8feb32f-7534-4ae4-9b93-6c79d68bfc49 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/e8feb32f-7534-4ae4-9b93-6c79d68bfc49 |archive-date=10 December 2022|access-date=8 August 2021|website=Financial Times|url-access=subscription}}</ref>  The tribunal ruled that KPMG's involvement with Silentnight was "deeply troubling" as it failed to act solely in its client's interests.<ref>{{Cite web|last=Robinson|first=Jon|date=2021-08-05|title=KPMG fined £13m over role in bed maker's sale to private equity firm|url=https://www.business-live.co.uk/professional-services/kpmg-fined-13m-over-role-21230980|access-date=2021-08-08|website=Business Live|language=en}}</ref>

In September, PCAOB fined KPMG Australia $450,000 after it confessed to a cheating scandal involving over 1,100 (almost 12%) of its employees.<ref>{{Cite news|last=Cassidy|first=Caitlin|date=September 12, 2021|title=US watchdog fines KPMG Australia over 'widespread' cheating on online training tests|work=The Guardian|url=https://www.theguardian.com/australia-news/2021/sep/15/us-watchdog-fines-kpmg-australia-over-widespread-cheating-on-online-training-tests|access-date=December 17, 2021}}</ref>

In November, a British litigation financing firm—Augusta Ventures announced that it will bankroll three $152.4-million lawsuits in Canada against the previous auditor (KPMG LLP), authorized legal adviser (Cassels Brock & Blackwell LLP) and monetary adviser (Canaccord Genuity Corp) of the Money Retailer Monetary Providers Inc., a Canadian payday lender that filed for creditor safety in 2014.  "It’s alleged in these lawsuits that KPMG, Cassels Brock and Canaccord triggered over $100-million in damages to Money Retailer and its collectors," mentioned Mr. Aziz, President of BlueTree Advisors Inc., a company restructuring advisory agency primarily based in [[Oakville, Ontario]].<ref>{{Cite news|last=Kerr|first=Jarren|date=November 28, 2021|title=Britain-based litigation firm to finance lawsuit against Canadian advisers of failed payday lender|work=The Globe and Mail|url=https://www.theglobeandmail.com/business/article-britain-based-litigation-firm-to-finance-lawsuit-against-canadian/|access-date=November 29, 2021|url-access=subscription}}</ref>

Also in November, KPMG UK has been hit with a £15m lawsuit by insurance outsourcer Watchstone—formerly known as Quindell—over allegations it suffered losses because of the audit firm's negligence in 2013.<ref>{{Cite news|last=Booth|first=James|date=November 30, 2021|title=KPMG hit with £15m lawsuit over Quindell audit failings|work=UK Today News|url=https://todayuknews.com/finance/kpmg-hit-with-15m-lawsuit-over-quindell-audit-failings/|access-date=1 December 2021|archive-date=3 December 2021|archive-url=https://web.archive.org/web/20211203015004/https://todayuknews.com/finance/kpmg-hit-with-15m-lawsuit-over-quindell-audit-failings/|url-status=dead}}</ref>

Again in November, two units of Abraaj that are now in liquidation, filed a lawsuit in [[Dubai]] against KPMG LLP for damages of US$600 million alleging that KPMG accountants "failed to maintain independence and an appropriate attitude of professional skepticism," and breached their duty of care when auditing the private-equity firm.<ref>{{Cite news|last=Geor Louch|first=William Patrick|date=November 11, 2021|title=KPMG Sued for $600 Million Over Alleged Sloppy Auditing in Dubai's Abraaj Scandal|work=Bloomberg|url=https://www.bloomberg.com/news/articles/2021-11-11/kpmg-sued-in-dubai-for-600-million-over-alleged-sloppy-auditing|access-date=December 11, 2021}}</ref>

==== 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>

====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>

==== 2024 ====

In late-December 2023 an organisation named, Collectif Porteurs H2O, that represents 9,000 individual investors in funds managed by French asset manager, H2O, sued its auditor, KPMG's French affiliate, as being jointly liable, along with H2O, its former parent, Natixis, and its custodian, CACEIS, for the losses of almost €700 million ($764 million) due to investments in illiquid assets tied to German financier [[Lars Windhorst]].  The UK financial regulator, [[Financial Conduct Authority]], in August made H2O compensate investors to the extent of €250 million ($273 million) and forced H2O to relinquish its UK license.  H2O was separately fined €75 million ($82 million) in 2022 by the French regulator, [[Autorité des Marchés Financiers (France)]].<ref>{{Cite news |last=Smith |first=Robert |date=August 7, 2024 |title=H2O Asset Management to pay investors €250mn after FCA finds 'serious breaches' |url=https://on.ft.com/4du8Ijq |access-date=August 9, 2024 |work=The Financial Times}}</ref>

During February, KPMG's South African affiliate is supposed to have entered into a confidential out-of-court settlement of 500 million Rand (~$27 million) with the liquidators of bankrupt South African bank, [[VBS Mutual Bank]] in response to their lawsuit against KPMG filed in February 2021 for 863.5 million Rand (~$59 million).<ref>{{Cite news |last=Mantshantsha |first=Sikonathi |date=February 1, 2024 |title=KPMG agrees to cough up R500 million to quash lawsuit for flawed VBS Mutual Bank audit |url=https://www.news24.com/fin24/companies/kpmg-agrees-to-cough-up-r500-million-to-quash-lawsuit-for-flawed-vbs-mutual-bank-audit-20240201 |access-date=March 20, 2024 |work=News24.com|url-access=subscription}}</ref>

In March, KPMG's UK affiliate was fined £1.46 million ($1.9 million) by the UK accounting regulator, [[Financial Reporting Council]] for 'basic failings' in its audit of the 2018 financial statements of advertising agency, M&C Saatchi plc.  FRC indicated that KPMG would have been fined £2.25 million ($2.8 million) had it not admitted to the breaches.<ref>{{Cite news |last=Meddings |first=Sabah |date=March 4, 2024 |title=British accounting watchdog fines KPMG $1.9 mn over Saatchi audit failings |url=https://www.business-standard.com/world-news/british-accounting-watchdog-fines-kpmg-1-9-mn-over-saatchi-audit-failings-124030400575_1.html |access-date=March 12, 2024 |work=Business Standard}}</ref>

Also in March, US accounting regulator [[Public Company Accounting Oversight Board]] sanctioned three partners of KPMG China affiliate KPMG Huazhen LLP, for violations of audit standards and fined it $150,000.<ref>{{cite web |title=PCAOB Sanctions Three Partners of KPMG China for Violations of Audit Standards |url=https://pcaobus.org/news-events/news-releases/news-release-detail/pcaob-sanctions-three-partners-of-kpmg-china-for-violations-of-audit-standards |website=PCAOB New Release |publisher=PCAOB |access-date=10 August 2024}}</ref>

In April, PCAOB fined KPMG's Netherland affiliate, KPMG Accountants N.V, $25 million for violations of its rules and quality control standards relating to the firm’s internal training program and monitoring of its system of quality control.  The PCAOB found that widespread improper answer sharing occurred at the firm over a five-year period and that the firm made multiple misrepresentations to the PCAOB about its knowledge of the misconduct.<ref>{{Cite web |date=April 10, 2024 |title=PCAOB Imposes Record $25 Million Fine on KPMG Netherlands and Bars a Firm Leader After Exam Cheating, Misinforming Investigators |url=https://pcaobus.org/news-events/news-releases/news-release-detail/pcaob-imposes-record--25-million-fine-on-kpmg-netherlands-and-bars-a-firm-leader-after-exam-cheating--misinforming-investigators |access-date=April 18, 2024 |website=Public Company Accounting Oversight Board (PCAOB)}}</ref>

KPMG has been criticized over its audit for the distressed [[New York Community Bank]] (NYCB) in light of its passing audits for three regional banks that failed in 2023.<ref>{{cite news |title=KPMG faces fresh questions over audits after New York Community turmoil |url=https://www.americanbanker.com/news/kpmg-faces-fresh-questions-over-audits-after-new-york-community-turmoil |work=American Banker |date=6 March 2024 |language=en}}</ref>

During August, the National Financial Reporting Authority (NFRA), an independent regulatory body in India that oversees the accounting and auditing of companies, fined KPMG's Indian affiliate, BSR & Associates LLP, Rupees 10 Crore (~$1.2 million) for lapses in auditing the 2018-19 financial statements of coffee chain, Coffee Day Enterprises and barred two of its partners from audit work for up to ten years.  This followed an earlier Rupees 2.15 Crore (~$0.3 million) fine for similar lapses with a related entity, Coffee Day Global.<ref>{{Cite web |date=August 19, 2024 |title=National Financial Reporting Authority - Orders |url=https://cdnbbsr.s3waas.gov.in/s3e2ad76f2326fbc6b56a45a56c59fafdb/uploads/2024/08/202408191036463933.pdf |access-date=November 5, 2024 |website=National Financial Reporting Authority of India}}</ref>

==== 2025 ====

During January, UK accounting regulator [[Financial Reporting Council]] announced that it has opened an investigation into the 2022 audit of gambling company, Entain, which was conducted by KPMG's UK affiliate.<ref>{{Cite news |last=Davies |first=Rob |date=2025-01-20 |title=KPMG under investigation over audit of gambling company Entain |url=https://www.theguardian.com/business/2025/jan/20/kpmg-investigation-entain-frc |access-date=2025-01-21 |work=The Guardian |language=en-GB |issn=0261-3077}}</ref>

During March, US accounting regulator [[PCAOB]] announced nine settled disciplinary orders sanctioning nine firms from KPMG’s global network (Switzerland, Korea, Australia, Canada, Brazil, Italy, Israel, Mexico and UK) for violations of PCAOB rules and standards, including quality control standards.  Each firm consented to a PCAOB order that censures the firm and imposes civil money penalties totaling US$3.375 million.<ref>{{Cite news |date=2025-03-11 |title=PCAOB Sanctions Nine KPMG Global Network Firms for Violations of PCAOB Rules and Standards, Including Quality Control |url=https://pcaobus.org/news-events/news-releases/news-release-detail/pcaob-sanctions-nine-kpmg-global-network-firms-for-violations-of-pcaob-rules-and-standards--including-quality-control |access-date=2025-03-13 |work=PCAOB |language=en-GB }}</ref>