The U.K. Financial Reporting Council (FRC) on Tuesday announced a reduced penalty of approximately 3.4 million pounds (U.S. $4.3 million) against KPMG for failures in its fiscal year 2010 audit of car maker Rolls-Royce.
The Big Four firm was faulted for red flags undocumented in its work at Rolls-Royce, which in January 2017 agreed to an $800 million global resolution with authorities in the United States, the United Kingdom, and Brazil following a lengthy investigation into allegations of bribery and corruption. The FRC said KPMG failed to address matters identified in its audit, namely two sets of payments made by Rolls-Royce to agents in India, that would go on to form two of the 12 counts of conspiracy to corrupt, false accounting, and failure to prevent bribery included in the automotive company’s deferred prosecution agreement reached with the U.K. Serious Fraud Office.
