JDS to probe Independent auditors

JDS to probe Independent auditors

KPMG is to be investigated by the accounting profession's senior watchdog over its role as auditors to Independent Insurance, the group that collapsed in June this year.

The accountants’ Joint Disciplinary Scheme announced its decision today to conduct an inquiry into the role of the auditors, advisers, directors and employees of the insurance company.

Concerns arose over the state of the insurance company in May when actuaries Watson Wyatt uncovered huge losses from claims that had not been entered into the company’s accounting system. Watson Wyatt had provided Independent’s actuarial certificate and KPMG had signed off its 2000 accounts.

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

In July, Labour MP Barry Gardiner lambasted the auditors for ‘a huge conflict of interest because auditing is a loss-maker and to make a profit they have to sell consulting work’.

A statement from the JDS said: ‘The referral should not be construed as meaning either that a view has been formed that a prima facie case exists against any member or member firm or that such a finding is likely.’

Links

KPMG waits on Independent backlash

KPMG may avoid Independent battle

The accountants’ Joint Disciplinary Scheme website Independent auditor slammed by MP

Taking Stock – Maxwellian tragedy

KPMG target for Independent creditors

Independent collapse hits indemnity cover

ICAEW to investigate insurer’s collapse

Independent FD unaware of contracts

Liquidators appointed at Independent

SFO called to probe Independent

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

3m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

4m

Related Articles

Audit of the future

Audit Audit of the future

5d Andy Turner, Audit and Business Advisory Partner
PwC audit changes are “unacceptable”

Audit PwC audit changes are “unacceptable”

1w Tom Lemmon
PwC reveals “big deal” tech plan to boost audit quality

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

2w Dave Beach
ICAEW: Companies House data a “gaping hole in AML defences”

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

2w Dave Beach
Grant Thornton to up audit quality with new appointment

Audit Grant Thornton to up audit quality with new appointment

2w 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?

4w Tom Lemmon
Audit sector needs a bold new regulator

Audit Audit sector needs a bold new regulator

4w Sam Walsh and Richard Khaldi, Regulation and transformation experts at PA Consulting
KPMG UK announce new audit structure – but is it enough?

Audit KPMG UK announce new audit structure – but is it enough?

1m Tom Lemmon