In a dramatic turnabout, KPMG has stopped working for bridge financing company Versailles where the Big Five firm was investigating accounting irregularities.
According to reports today, the relationship was ended by Versailles when KPMG expressed doubts over its ability to endorse the company’s accounting policies.
KPMG was appointed by Versailles in December after pressure from its main banks National Westminster, the Royal Bank of Scotland and Barclays. The move followed the suspension of Versailles’ stock exchange listing in the same month.
KPMG is not the only accountancy company involved in the Versailles controversy. Baker Tilly has also been appointed by Versailles to undertake an investigation for the stock exchange.
A statement from KPMG said: ‘On 13 December we were invited to meet certain executive and non executive directors of Versailles, with a view to undertaking an in depth investigation into the current affairs of the company and to assist it to lift the Stock Exchange suspension of trading in Versailles shares.
?Initially, at the request of Versailles and the lending banks, KPMG worked for both parties. Subsequently these arrangements became unworkable. KPMG withdrew from its engagement with the banks on 22 December to work solely for the company, again at Versailles’ request.
‘On 4 January Versailles terminated their engagement with KPMG.’
Versailles accounting scandal: The history