Deloitte and KPMG fined by ICAEW

Deloitte and KPMG have been rapped over the knuckles by the ICAEW over
auditing mistakes.

Deloitte has agreed to pay a fine of
£130,000 and costs of £15,500 over valuations of a companies properties that
‘could have been materially overstated’.

Separate European properties at the company, which was not named, should have
been valued by an external valuer, the ICAEW’s investigation committee documents
say. The accounts were for the year ended 31 December 2000.

KPMG also agreed to a fine of £80,000
and costs of £7,500 for signing off accounts of another unnamed company for 2002
and 2003 that did not give a true and fair view.

The papers say instead that amounts owed to trade creditors were ‘materially
understated’ in the books.

Deloitte said that it was ‘disappointed by this regrettable matter,’ adding
that following a review of procedures it was ‘confident our oresent procedures
would prevent a recurrence’.

KPMG said: ‘We regret there were some things understated but there were
unusual circumstances around this audit. It happened a number of years ago and a
number of our procedures have changed since then.’

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