The accounting firm fined £14 million over its audit of Carillion was KPMG.
Carillion, a major British construction and services company, entered liquidation in January 2018 after issuing profit warnings and revealing severe financial problems. Parliamentary and regulatory investigations examined the company’s accounting, governance, directors, and auditors.
The Financial Reporting Council fined KPMG £14.4 million in 2022 over serious failures in its audits of Carillion. The regulator said the audit work did not meet required standards in areas including contract accounting and professional skepticism.
Carillion’s collapse was not caused by one isolated accounting entry. It involved long-term contract estimates, debt, cash pressure, and concerns about dividend payments. KPMG was Carillion’s external auditor, while other firms had separate advisory roles.