KPMG responds to the Financial Reporting Council (FRC) announcement of the closure of its investigation into the conduct of KPMG’s audit of HBoS plc for the year ended 31 December 2007.
“We are pleased that the FRC has reached this conclusion after a thorough investigation. We have always maintained that our audit was robust and undertaken in accordance with the regulations and practice of the time.
“However, we also recognise the findings of the FRC’s 2014 thematic review on bank audits, which highlighted that the quality of bank audits needed improving in certain areas. This review also showed how the profession had risen to and responded to this challenge.
“The collapse of HBoS and other examples of corporate failure and fraud in the last decade have highlighted a gap between what society expects of an audit and what an audit has been designed to do. Since 2008, whilst we recognise that there is more to be done, we have worked hard to contribute positively to this debate and have explored ways to close the expectation gap, for example, by offering extended audit opinions which give a view on corporate risks.”
About KPMG in the UK:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
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