KPMG's problems extend beyond some misunderstandings about the propriety of sharing some anecdotes with golfing buddies in exchange for cash at its Los Angeles office.
The Financial Reporting Council will investigate whether KPMG “was independent” when it audited the annual accounts of Nottingham, England-based Pendragon Plc for 2010 and 2011. The regulator is also probing the conduct of a KPMG partner in relation to a “non-timely disposal of a share-holding in a client entity,” the FRC said in separate statements on its website today.
The probes mean the accounting firm could face three FRC inquiries as the regulator decides whether to investigate the audits of HBOS Plc….
The accounting firm said it is “disappointed” that one of its partners “failed to dispose of the relevant shares on a timely basis and that our firm’s procedures, in this instance, did not deal appropriately with that failure.”
Regarding the Pendragon audits, KPMG said it is “of the view that our independence as auditor for these years was maintained.”