PracticeAuditBig Four firms face legal action in Australia

Big Four firms face legal action in Australia

PwC and KPMG facing claims from Heart Research Centre and DMG Industries

PricewaterhouseCoopers and
KPMG are facing legal action from
clients in Australia.

PwC is facing action from the Heart Research Centre for failing to detect
theft of more than AUS$450 000 (£188.517) by an employee.

The firm agreed to audit the Centre’s books in 1997.

The centre claims that the firm failed to detect and report the theft, or
failed to report their awareness of the theft in the course of the audit,
The
Age
reported.

The centre is claiming damages under Australia’s Trade Practices Act, saying
the firm misled or deceived it in giving assurance that no irregularities were
detected and had not occurred during the audit period.

In a separate case, a tool-making company, DMG Industries is taking KPMG to
court alleging the firm did not advise it properly.

DMG contracted the firm to prepare its research and development tax
concession claims for research and development spending.

The company says KPMG’s improper advice meant it lost out on higher benefits
which amounting to AUS$4m (£1.675m).

Further reading:

E&Y Japan takes on Misuzu staff

Plea agreement likely in KPMG tax shelter
case

EU to consult on auditor liability cap

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

4d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

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

1w 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