KPMG sued for £800,000 by ex-audit client.
KPMG is being sued by a Midlands livestock marketing company for almost £800,000 in damages over claims of negligence.
KPMG is being sued by a Midlands livestock marketing company for almost £800,000 in damages over claims of negligence.
Plans to float Midland Marts Limited were thrown into chaos after investigations by the Big Five firm showed a discrepancy of about £380,000 in its 1997 accounts, according to a High Court writ.
KPMG could not reconcile the figure despite a month’s investigation and told the managing director there were three possible explanations; a shortfall from debtors, overpayment to creditors, or theft.
Subsequent investigations by Horwath Clark Whitehill did not reach any conclusion, except that theft was not thought to be involved.
The flotation of Midland Marts Group was abandoned and MML ceased trading in August 1998, having held its last sale two months earlier.
The writ attributes this to KPMG’s failure to sign off the 1997 accounts.
The company alleges KPMG failed to exercise reasonable competence in planning and conducting the audit, and was negligent. A subsequent audit by Chancery Partnership of the 1997 accounts showed debtors were overstated by £219,000.
KPMG responded: ‘We think that the claim is without merit and we will be contesting it strongly.’
KPMG warns NIC burden is hindering companies
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceGlobal spend on accountancy outsourcing up by 40% in the space of five years. News comes as accountancy outsourcing specialist AdvanceTrack reports en...
View articleFollowing a profitability review, Deloitte has decided to scale back its UK deals business due to lower returns. This strategic shift could lead to jo...
View articleUK-based Dow Schofield Watts (DSW), a mid-market professional services network, announced the creation of a new division called DSW Principal Partners...
View articleEY has been undergoing significant cost-cutting measures and streamlining its operations since the abandonment of Project Everest. The firm has made t...
View articleTransitioning from an accounting firm to a consultancy model is only one part of the puzzle. The next, equally vital piece is making the market aware ...
View articleThis framework, while providing a top-line view, underscores the importance of strategic vision, operational excellence, and the spirit of continuous ...
View articleLooking ahead, the Big 4 firms face a challenging year, with ongoing cost-of-living concerns, slow economic growth, rising geopolitical tensions, and ...
View articleLast month it was reported that Deloitte would be cutting approximately 1,200 jobs in the United States, making it the latest of the Big Four accounti...
View article