The UK’s accountancy watchdog has launched an investigation into KPMG’s under-fire audit of Rolls Royce financial statements dating back to the last 5 years. The new concerns come after Rolls Royce paid a settlement in the regions of almost a billion to KPMG to fence off corruption and criminal activities claims against them.
So now the Financial Reporting Council is getting involved and they will probe into the accountancy giants audits of Rolls Royce between December 2010 and 2013.
“The FRC has commenced an investigation under the Audit Enforcement Procedure into the conduct of KPMG Audit Plc, in relation to the audit of the financial statements of Rolls-Royce Group plc for the year ended 31 December 2010 and of Rolls-Royce Holdings plc for the years ended 31 December 2011 to 31 December 2013.” – An FRC spokesperson said.
They also added “The decision to investigate follows the SFO announcement on 17 January 2017 of a Deferred Prosecution Agreement between the SFO and Rolls-Royce which relates to offences including conspiracy to corrupt and a failure to prevent bribery.”
Despite being under scrutiny, KPMG has said in a statement that they are confident in the quality and professionalism of their work and believe there’s no reason to to think otherwise.