PracticeAuditKPMG 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

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

5d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

2w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

2w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor