KPMG to pay costs in Northern Ireland scandal
KPMG has been handed a stinging rebuke over audit failures which led to one of Northern Ireland's worst financial scandals.
The Big Four firm’s Irish partnership faces costs of ? ¬430,000 (£270,000) after an investigation into its 1997 audit of agricultural machinery manufacturer Matbro.
An Institute of Chartered Accountants in Ireland inquiry heard that KPMG and audit partner Saunders Graham had failed to follow rules requiring confirmation of crucial financial information. The three-year inquiry found ‘inadequate application of professional scepticism’ during the course of its audit of Matbro, a subsidiary of engineering firm Powerscreen International.
In a statement, KPMG acknowledged criticisms made by the committee of inquiry over aspects of its audit. The partnership agreed ‘that the work, in this particular case, fell below the firm’s rigorous standards’.
A spokesman added: ‘The firm has since adopted additional procedures to improve the detection of irregularities that occurred within Matbro.’