KPMG faces probe over Independent audit.

KPMG faces probe over Independent audit.

Auditor in the dock over Independent Insurance collapse.

KPMG is to be investigated by the accountancy profession’s senior watchdog over its role as auditor to collapsed Independent Insurance group. The news comes as Class Law, a law firm working for around 1,000 former policyholders, builds up a multimillion pound case against the firm.

Chris Dickson, executive counsel at the Joint Disciplinary Scheme, the watchdog charged with investigating breaches by ICAEW members and member firms, will compile evidence to assess whether KPMG and Dennis Lomas, former finance director of the company and an ICAEW accountant, contributed to the company’s collapse.

The JDS can impose heavy fines on firms and ban accountants from practising.

A statement from KPMG said: ‘The factors surrounding the collapse of Independent are very complex with clear evidence that information was withheld from both ourselves, our advisers, the board and the regulators.’

Concerns arose in May when actuaries Watson Wyatt uncovered huge losses from claims that had not been entered into the company’s accounting system.

PricewaterhouseCoopers was appointed provisional liquidator at Independent following the insurer’s decision to suspend writing new business in June.

Links

KPMG in investors’ backlash

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

1y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

1y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

1y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

1y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource