KPMG accused of providing ‘false and misleading’ information, not once but twice

The UK’s accountancy watchdog has made a formal complaint against KPMG, and certain staff members, for providing “false and misleading” information and documents about the collapse of construction giant Carillion.

The Financial Reporting Council said the problems came to light following what was supposed to be a routine check of the quality of KPMG’s audit of the Carillion accounts.

The worry for KPMG is that the FRC said it was looking at similar misconduct complaints against the firm’s work with Regenersis, a technology company.

FRC says the formal complaint does not allege misconduct from the audits or that the financial statements were not properly prepared. The audit and preparation of the 2016 Carillion financial statements are in fact subject to a separate investigation.