KPMG Norway ordered to pay £50m in damages

KPMG Norway has been ordered to pay 656m kroner (£50m) in damages following
one of the country’s worst bankruptcies.

The Oslo district court found that the firm had been negligent in auditing
the books of Finance Credit, a company that was declared bankrupt in 2003 owing
1.3bn kroner to eight banks.

The court said that as the auditor, the firm had a duty to ensure that
Finance Credit’s books ‘accurately reflected’ its finances, and ordered KPMG to
compensate creditors through the defunct company’s bankruptcy administrator. In
addition to damages, the court ordered KPMG to pay 6.5m kroner in legal costs.

KPMG has said it will appeal.

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