PracticeAuditAudit inspectors extend green light to KPMG

Audit inspectors extend green light to KPMG

KPMG's extended audit package 'does not harm quality', according to audit inspectors

KPMG’S EXTENDED AUDIT package has been given the green light by the Financial Reporting Council’s Audit Inspection Unit in its recent annual review.

Inspectors found “no adverse impact on audit quality”, and concluded that all the relevant ethical standard requirements had been met by the firm.

Head of UK audit Oliver Tant is the architect behind the package, which caused much controversy when it was first sold to Rentokil in 2009.

Last month, Accountancy Age sources indicated that the AIU would look favourably upon the product. In its 2009/10 report, inspectors concluded: “It appeared that these services were more in the nature of an extended audit rather than a traditional internal audit

In light of the publicity the issue attracted, this year’s inspection examined the audit of two entities using the service but found little to comment on, as evidenced by the four-line entry in KPMG’s report.

Critics have in the past warned against external auditors providing internal audit-style services, saying it compromises independence and risk controls.

Related Articles

Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

7d Emma Smith, Managing Editor
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter
Carillion collapse: FRC to investigate KPMG over audit work

Audit Carillion collapse: FRC to investigate KPMG over audit work

4m Alia Shoaib, Reporter
Former KPMG partners charged over PCAOB data leaks

Audit Former KPMG partners charged over PCAOB data leaks

4m Alia Shoaib, Reporter
Top 5 audit fines of 2017

Audit Top 5 audit fines of 2017

5m Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

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

6m Carl Johnson, Stephensons
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

6m Alia Shoaib, Reporter