KPMG faces probe over Independent audit.

KPMG faces probe over Independent audit.

Auditor in the dock over Independent Insurance collapse.

KPMG is to be investigated by the accountancy profession’s senior watchdog over its role as auditor to collapsed Independent Insurance group. The news comes as Class Law, a law firm working for around 1,000 former policyholders, builds up a multimillion pound case against the firm.

Chris Dickson, executive counsel at the Joint Disciplinary Scheme, the watchdog charged with investigating breaches by ICAEW members and member firms, will compile evidence to assess whether KPMG and Dennis Lomas, former finance director of the company and an ICAEW accountant, contributed to the company’s collapse.

The JDS can impose heavy fines on firms and ban accountants from practising.

A statement from KPMG said: ‘The factors surrounding the collapse of Independent are very complex with clear evidence that information was withheld from both ourselves, our advisers, the board and the regulators.’

Concerns arose in May when actuaries Watson Wyatt uncovered huge losses from claims that had not been entered into the company’s accounting system.

PricewaterhouseCoopers was appointed provisional liquidator at Independent following the insurer’s decision to suspend writing new business in June.

Links

KPMG in investors’ backlash

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

2m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

3m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

4m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

4m

Related Articles

Financial reporting – a new era beckons for professionals, directors and their insurers

Audit Financial reporting – a new era beckons for professionals, directors and their insurers

6d Rebecca Smith, Partner
KPMG slapped with $50m fine over past audit work

Audit KPMG slapped with $50m fine over past audit work

7d Tom Lemmon
Audit of the future

Audit Audit of the future

2w Andy Turner, Audit and Business Advisory Partner
PwC audit changes are “unacceptable”

Audit PwC audit changes are “unacceptable”

2w Tom Lemmon
PwC reveals “big deal” tech plan to boost audit quality

Audit PwC reveals “big deal” tech plan to boost audit quality

3w Dave Beach
ICAEW: Companies House data a “gaping hole in AML defences”

Audit ICAEW: Companies House data a “gaping hole in AML defences”

3w Dave Beach
Grant Thornton to up audit quality with new appointment

Audit Grant Thornton to up audit quality with new appointment

3w Dave Beach
Goldman Sachs chooses Mazars for audit – but does it really matter?

Audit Goldman Sachs chooses Mazars for audit – but does it really matter?

1m Tom Lemmon