The UK's FRC fined KPMG £1.46m for audit failures in M&C Saatchi, leading to restated 2018 accounts.

The UK's Financial Reporting Council (FRC) has fined KPMG £1.46m for audit failures in relation to advertising firm M&C Saatchi. The FRC found breaches including a failure to "audit with professional scepticism" and failures to properly audit journal entries. These problems ultimately led to the restatement of M&C Saatchi's company accounts for 2018. KPMG was initially set to receive a £2.25m fine, but this was reduced to £1.46m after the firm improved its audit processes. Adrian Wilcox, the audit engagement partner at KPMG, was initially set to be fined £75,000, but this was reduced to £48,750.

March 04, 2024
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