Audit Giants Shame: “Not Truth” Four Great Accountants KPMG Sink Deeper In Shame On The Collapse of Silent Knight
The referee found that KPMG and one of its senior partners lied to defend the work of the troubled mattress company Silentnight.
When an independent disciplinary judge claimed that Silent Knight had no choice but to go bankrupt and sell it to private equity firm HIGH Capital, the accounting giant said it had “advanced dishonest defenses.”
It also turns out that David Costley-Wood, a former head of restructuring at KPMG and Manchester, who led the work on Silent Night, was unable to work with regulatory investigators and provided evidence when requested. rice field.
Wrong numbers: The four major accountants, KPMG, have been involved in a series of scandals over audits conducted on some of the UK’s largest companies.
In embarrassing public shame, the referee discovered that KPMG had:
- Lie to that defense
- Could not disclose more than 1,800 documents to investigators
- It was not true to claim that Costley-Wood did not use his private email for work purposes
- Engaged in a conflict of interests in working at both Silentnight and HIGH
- I couldn’t tell the regulator that I was working for Silent Night before it was officially hired
- Endangers the money of 1,200 savers on Silentnight’s pension scheme.
This is the first time the court has found a party convicted of lying to the defense. In a bitter criticism of KPMG, the Regulatory Financial Reporting Council (FRC) said: [and] Exacerbate the original failure. “
Public shame arises as the company faces legal action on its role in several collapses, such as Carillion and Conviviality, the owner of Bargain Booz.
A series of scandals involving the so-called Big Four accounting firms like KPMG has caused turmoil in the accounting industry.
KPMG and Costley-Wood have each been paid over £ 800,000 in the last two years at the company, but have been accused of serious conflicts of interest.
KPMG not only advised on options for the mattress business, which is struggling under a heap of heavy debt, but also worked with HIG. HIG eventually bought Silent Knight’s debt, putting pressure on the company until it went bankrupt and bankrupting the company. In 2011, it was cheap and I abandoned my pension debt.
The FRC has fined KPMG £ 13m. This is the second largest fine in history. Costley-Wood has been sanctioned by £ 500,000 and has been banned from the industry for 13 years.
KPMG then sold its own bankruptcy business, now called Interpath, to HIG. However, the referee’s report does reveal the extent of KPMG’s misconduct. One industry source said it was “just another sign of KPMG’s culture.”
The main claim the FRC argued against Costley Wood was that it had not considered other options than Silent Night (a pre-collapse photo advertised by singer Myleene Klass) other than selling to HIG. was.
The referee added:
The referee also found it difficult to explain that KPMG did not inform regulators that it had done £ 45,000 for Silent Night before it was officially undertaken.
John Holt, KPMG’s CEO of the United Kingdom, said the report was “difficult to read.”
He added: We regret that it took more than 10 years to reach this point because the professional standards we expected from our partners were not met.
Audit Giants Shame: KPMG Sinks Deeper In Shame
Source link Audit Giants Shame: KPMG Sinks Deeper In Shame